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The Historical Roots Of India’S Service-Led Development: A Sectoral Analysis Of Anglo-Indian Productivity Differences, 1870-2000

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  • Broadberry, Stephen
  • Gupta, Bishnupriya

Abstract

Overall labour productivity in India was already only around 15 per cent of the UK level between the early 1870s and the late 1920s. Between 1929 and 1950 India fell further behind and remained at around 10 per cent of the UK level until the 1970s. India has been catching-up since the 1970s, but by the end of the twentieth century was still further behind than in the late nineteenth century. Agriculture has played an important role in India’s relative decline to 1950 and subsequent delay in catching up, since comparative India/UK labour productivity in this sector has declined continuously and agriculture still accounts for around two-thirds of employment in India. Comparative India/UK labour productivity in industry has fluctuated around a level of around 15 per cent. The only sector to exhibit trend improvement in comparative India/UK labour productivity over the long run is services, rising from around 15 per cent to around 30%. India’s recent emergence as a dynamic service-led economy appears to have long historical roots.

Suggested Citation

  • Broadberry, Stephen & Gupta, Bishnupriya, 2007. "The Historical Roots Of India’S Service-Led Development: A Sectoral Analysis Of Anglo-Indian Productivity Differences, 1870-2000," Economic Research Papers 269766, University of Warwick - Department of Economics.
  • Handle: RePEc:ags:uwarer:269766
    DOI: 10.22004/ag.econ.269766
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    Cited by:

    1. Broadberry, Stephen & Custodis, Johann & Gupta, Bishnupriya, 2015. "India and the great divergence: An Anglo-Indian comparison of GDP per capita, 1600–1871," Explorations in Economic History, Elsevier, vol. 55(C), pages 58-75.
    2. Chaudhary, Latika, 2010. "Taxation and educational development: Evidence from British India," Explorations in Economic History, Elsevier, vol. 47(3), pages 279-293, July.
    3. José María Serrano & María Dolores Gadea & Marcela Sabaté, 2016. "Lost in intervention. The Harrod--Balassa--Samuelson effect on the peseta/dollar real exchange rate (1870--1998)," Applied Economics Letters, Taylor & Francis Journals, vol. 23(14), pages 1012-1017, September.
    4. Kurosaki, Takashi, 2013. "Long-term Agricultural Growth in India, Pakistan, and Bangladesh from 1901/02 to 2001/02," CEI Working Paper Series 2013-06, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    5. Broadberry, Stephen N & Gupta, Bishnupriya, 2010. "Indian GDP Before 1870: Some Preliminary Estimates and a Comparison with Britain," CEPR Discussion Papers 8007, C.E.P.R. Discussion Papers.
    6. Kurosaki, Takashi, 2013. "Long-term Agricultural Growth in India, Pakistan, and Bangladesh from1901/02 to 2001/02," PRIMCED Discussion Paper Series 46, Institute of Economic Research, Hitotsubashi University.

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    More about this item

    Keywords

    International Development; Production Economics;

    JEL classification:

    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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