Manufacturing or Services? An Indian Illustration of a Development Dilemma

Amrit Amirapu and Arvind Subramanian

Working Papers from eSocialSciences

Abstract: Manufacturing has historically offered the fastest path out of poverty, but there is mounting evidence that this path may be all but closed to developing countries today. Some have suggested that services might provide a new path forward, while others have expressed skepticism about this claim and consequent pessimism over the future growth trajectories of developing countries. A multi-sector growth framework is constructed to establish five important criteria that any sector must exhibit in order to lead an economy to rapid, sustained, and inclusive development. These are: 1) a high level of productivity, 2) “dynamic†productivity growth (i.e., high growth rates coupled with domestic and international convergence), 3) expansion of the sector in terms of its use of inputs, 4) comparative advantage, or alignment between resource requirements of the sector and resource endowments of the country, and 5) exportability.

Keywords: manufacturing; India; economic growth; domestic; international; comparative advantage; resource endowments; exportability; services; productivity; dynamic; poverty; developing countries (search for similar items in EconPapers)
Date: 2015-09
Note: Institutional Papers
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37)

Downloads: (external link)
http://www.esocialsciences.org/Download/repecDownl ... &AId=7521&fref=repec
Our link check indicates that this URL is bad, the error code is: 503 Service Unavailable

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:ess:wpaper:id:7521

Access Statistics for this paper

More papers in Working Papers from eSocialSciences
Bibliographic data for series maintained by Padma Prakash ().