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Economic Development and Industrial Structure: A Micro-Level Study
Ajit Kumar Singh
Indian Journal of Industrial Relations
Vol. 14, No. 4 (Apr., 1979), pp. 545-557
Stable URL: http://www.jstor.org/stable/27765739
Page Count: 13
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Studies by Fisher, Clark, and Kuznets have established with the help of intercountry comparisons that economic development and industrial structure are interrelated in a unique way. There is a progressive shift with a rise in per capita income first from primary sector to secondary sector and later on to tertiary sector. The present paper seeks to find with the help of district level analysis whether this relationship also holds at the micro or the sub-regional level. Such a study would be important from theoretical, statistical, as well as policy points of view. Encouragingly our findings confirm the Fisher-Clark thesis. Taking the three-sector classification as the frame of analysis we find that differences in the industrial structure of labour force contribute to the differences in per capita district incomes, though differences in sectoral productivity also play an important and probably greater role. This suggests that regional development policy should aim at simultaneous increase in productivity in the primary sector and greater diversification of the regional economy.
Indian Journal of Industrial Relations © 1979 Shri Ram Centre for Industrial Relations and Human Resources