Statistical Analysis of Complexity in Productive Structure of Indian Economy: 1984–1996

Debdas Bandyopadhyay () and Prasanta Mandal
Additional contact information
Debdas Bandyopadhyay: University of Kalyani

Journal of Quantitative Economics, 2006, vol. 4, issue 2, No 8, 84-102

Abstract: Abstract The complexity in the productive structure of an economy may be measured by the nature and extent of association between the sales and the purchase profiles captured by its input-output table. In this paper we estimate the change in complexity in productive structure of the Indian economy during the period 1984–96, and identify its major sources, using two multivariate techniques viz. dummy variable regression technique and dual scaling technique. The analysis is carried out in two stages. In the first stage we use dummy variable regression technique with row and column dummies to identify input-output cells with high row-column dependence. Next we use dual scaling technique to decompose the row-column association into hierarchical loops. Our analysis reveals that (i) there has been significant increase in the level of complexity and degree of integration in the productive structure of Indian economy during the period 1984 to1996. This increase is most pronounced during the nineties when the economic reforms, in consonance with globalisation, were initiated for the Indian economy, (ii) the increase in the level of complexity and degree of integration in productive structure of Indian economy has not been gradual as there seems to have occurred a structural break in the productive structure of the Indian economy during the nineties (iii) the changes in economic complexity of Indian economy have been accompanied with significant changes in technological and /or market conditions faced by different sectors of the Indian economy; Manufacturing, Allied Agriculture and Services being the sectors having undergone tremendous change in both the aspects and (iv) in terms of maturity, as measured by the level of complexity and degree of integration, the Indian economy has started resembling the developed countries like USA and Canada.

Keywords: Input-Output Linkage; Multivariate Scaling; Association Loop; Field of Influence Approach (search for similar items in EconPapers)
JEL-codes: C67 D57 (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/BF03546450 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:jqecon:v:4:y:2006:i:2:d:10.1007_bf03546450

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40953

DOI: 10.1007/BF03546450

Access Statistics for this article

Journal of Quantitative Economics is currently edited by Dilip Nachane and P.G. Babu

More articles in Journal of Quantitative Economics from Springer, The Indian Econometric Society (TIES) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().