Services-Led Growth: Inter-sectoral Relationship and Impact on Poverty

  • Arup Mitra


Certain stylised facts which have emerged in the process of economic growth help to understand the relationship between composition of growth and employment and well-being. The role of industry as the engine of growth is one amongst the best historically documented facts (Ginneken and Hoeven 1989; Rodrik 1997), as it plays a crucial role in generating high-productivity employment and enhancing the standard of living of the population. As per Kaldor (1967), the potential for productivity growth is highest in the manufacturing sector. He, in fact, provided the theoretical rationale for the patterns of structural change that Kuznets (1966) had observed in the case of advanced countries during the process of their economic development (Dasgupta and Singh 2006). Since economic growth is historically associated with employment growth, the workforce structure is also seen to undergo a similar shift away from the primary towards the industry (see Mitra 2008; Mitra and Schmid 2008).


Capita Income Service Sector Manufacturing Sector Human Development Index Dynamic Component 
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© Springer India 2013

Authors and Affiliations

  • Arup Mitra
    • 1
  1. 1.Institute of Economic GrowthDelhi UniversityDelhiIndia

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