Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81477
Authors: 
Douhan, Robin
Nordberg, Anders
Year of Publication: 
2008
Series/Report no.: 
IFN Working Paper 778
Abstract: 
It is often assumed that recent success in the high-technology software industry will lead India's development. However, evidence suggest that basic manufacturing industry is stagnant. This paper proposes a mechanism that ties these two trends together. A big-push type of model, featuring linkages between firms, demand spill-over, and technology choice is elaborated. By imposing different cost structures on the manufacturing and high-technology industries the model describes outcome in terms of distribution between sectors. It is found that a policy which promotes a high-technology sector can have negative effects on the manufacturing industry as well as aggregate income. Directing resources towards infrastructure, on the other hand, benefits all sectors and increases aggregate income. The results from the model are found to correspond with the recent development pattern in India.
Subjects: 
Industrialization
India
Industrial Structure
JEL: 
L16
O14
O25
Document Type: 
Working Paper

Files in This Item:
File
Size
257.67 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.