IDEAS home Printed from
   My bibliography  Save this paper

Stagnation and revival of Kerala economy: An open economy perspective


  • K.N. Harilal

    (Mahatma Gandhi University)

  • K.J. Joseph

    (Centre for Development Studies)


One debilitating feature of the existing literature on the development dynamics of Kerala economy is the undue emphasis on endogenous factors. The making of the `Kerala model' as well as its crisis are sought to be understood in a closed economy framework. While the emphasis on endogenous factors, particularly on the redistributive policies, is eminently justifiable, what is conspicuously missing in the literature is an effort to unravel the mystery of the general backwardness of the goods producing sectors. This is particularly true of the studies on the crisis of the regional economy since the mid seventies. Given the closed economy perspective, neither the migration nor the remittance has figured in the analytics of development of the region. The mainstream approach has been one of treating the boom in remittance as a boon, with no bearing on the crisis except that it helped moderate the adverse impact of the same. Given the extreme dependence of the regional economy on rest of the world, the present study approaches the problem in an open economy perspective and bring the question of migration and remittance to its rightful place within the structure of the regional economy. Drawing insights from the Dutch disease economics, the present paper argues that the crisis of the commodity producing sectors witnessed during the period since mid seventies could be attributed to the resource movement and spending effect associated with remittance boom. The study also highlights a revival in the growth of the regional economy since the mid eighties and makes an attempt to account for the same in terms of different factors including the adaptation of the regional economy to the Dutch disease environment.

Suggested Citation

  • K.N. Harilal & K.J. Joseph, 2000. "Stagnation and revival of Kerala economy: An open economy perspective," Centre for Development Studies, Trivendrum Working Papers 305, Centre for Development Studies, Trivendrum, India.
  • Handle: RePEc:ind:cdswpp:305

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Fardmanesh, Mohsen, 1991. "Dutch disease economics and oil syndrome: An empirical study," World Development, Elsevier, vol. 19(6), pages 711-717, June.
    2. Nyoni, Timothy S., 1998. "Foreign Aid and Economic Performance in Tanzania," World Development, Elsevier, vol. 26(7), pages 1235-1240, July.
    3. Usui, Norio, 1996. "Policy adjustments to the oil boom and their evaluation: The Dutch disease in Indonesia," World Development, Elsevier, vol. 24(5), pages 887-900, May.
    4. Neary, J Peter, 1978. "Short-Run Capital Specificity and the Pure Theory of International Trade," Economic Journal, Royal Economic Society, vol. 88(351), pages 488-510, September.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Terah Sportel & René Véron, 2016. "Coconut Crisis in Kerala? Mainstream Narrative and Alternative Perspectives," Development and Change, International Institute of Social Studies, vol. 47(5), pages 1051-1077, September.
    2. K.K. Subrahmanian & E. Abdul Azeez, 2000. "Industrial growth in Kerala: Trends and explanations," Centre for Development Studies, Trivendrum Working Papers 310, Centre for Development Studies, Trivendrum, India.
    3. P. Mohanan Pillai & N. Shanta, 2005. "Long term trends in the growth and structure of the net state domestic product in Kerala," Centre for Development Studies, Trivendrum Working Papers 376, Centre for Development Studies, Trivendrum, India.
    4. N. Vijayamohanan Pillai, 2004. "CES function, generalised mean and human poverty index: Exploring some links," Centre for Development Studies, Trivendrum Working Papers 360, Centre for Development Studies, Trivendrum, India.

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ind:cdswpp:305. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamprasad M. Pujar). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.