A Dynamic General Equilibrium (DGE) Model of Structural Transformation for India

Kausik Gangopadhyay (), Debasis Monda and Thasni Thajudeen ()
Additional contact information
Kausik Gangopadhyay: Indian Institute of Management Kozhikode
Debasis Monda: Indian Institute of Technology Delhi
Thasni Thajudeen: Indian Institute of Management Kozhikode

No 467, Working papers from Indian Institute of Management Kozhikode

Abstract: An immature secondary sector is hampering a sustainable economic development in India. The present study is an attempt to understand the underlying factors causing the unbalanced growth of the Indian economy using a general equilibrium model for a period from 1983 to 2013. The three sector model simulates the output and employment share of the country to compute the labour productivity. The model output of employment share shows that the actual labour share of the secondary sector and the tertiary sector are relatively very less compared to the expected share. The actual labour share of the agriculture sector is much higher compared to the expected labour share of the sector. The labour productivity is computed using the model output on labour and output and then decomposes the productivity growth in to three components using canonical decomposition method (de. Vries et. al., 2015). Finally the three components are used to compute a measure called sturctural transformation index (Gangopdhyay et. al., 2020) to quantify the extent of structural transformation happened in the economy.

Pages: 18 pages
Date: 2021-07
References: Add references at CitEc
Citations:

Downloads: (external link)
https://iimk.ac.in/uploads/publications/3493WPS_46 ... 0_UploadFile_FNL.pdf
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iik:wpaper:467

Access Statistics for this paper

More papers in Working papers from Indian Institute of Management Kozhikode IIMK Campus PO, Kunnamanagalam, Kozhikode, Kerala, India -673570. Contact information at EDIRC.
Bibliographic data for series maintained by Sudheesh Kumar ().