Structural change of Bihar economy during 1999 to 2010: a district level analysis

Santra, Swarup and Kumar, Rajesh and Bagaria, Nidhi (2014): Structural change of Bihar economy during 1999 to 2010: a district level analysis. Published in: The International Journal Of Humanities & Social Studies , Vol. 2, No. 1 (January 2014): pp. 129-135.

Abstract

Conventionally, the economic growth of a country is appraised in form of gross domestic product (GDP). In Bihar, the per capita net state domestic product (NSDP) is the lowest among the major states in Inida, and it is only one-third of the national level of per capita GDP. The services, industry, and agricultural sectors contributed 52 per cent, 28 per cent, and 20 per cent to India’s overall GDP respectively, in 2006. However, the contribution of these major sectors to GDP at state level is not uniform. For Bihar at state level, the share of primary sector is continuously decreasing over the stated time period. For the secondary sector, the share had decreased after bifurcation of Bihar, however, that share increased a little bit in 2009-2010. And similar to the India average, the share for Tertiary sector is continuously increasing at 60% of NDDP. The dictrics like Patna, Begusarai, Munger and Bhagalpur which are higher per capita NDDP, are very less share in primary sector. The most important part here is the very low share of industrial sector. However, the share of industrial sector has started increased during the period 2005-2010. Structure of Bihar’s economy is changing not only at state level, but at district level also. And these changes need to be more casious planning and good initiatives from Govt. And the change is already in its way.

• Item Type: MPRA Paper
• Language: English
• Keywords: Bihar, Net District Domestic Product (NDDP), Sectoral Contribution, Structural Change
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General > E00 - General; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General

References

1. Basu, K. and Maertens, A. (2007): “The Pattern and Causes of Economic Growth in India”, BREAD Working Paper No. 149, April, 2007.

2. Bhattarcharya, B. B. and Sakthivel, S. (2004): “Regional Growth and Disparities in India: Comparison of Pre- and Post-Reform Decades”, Economic and Political Weekly, Vol. 39, No. 10, pp. 1071-1077.

3. Bhattacharya, D. (2000): “Bihar after Bifurcation: A Challenging Future”, Economic and Political Weekly, Vol. 35, No. 43-44, pp. 3800–3804.

4. Das Gupta, C. (2010): “Unravelling Bihar’s ‘Growth Miracle’”, Economic & Political Weekly, Vol. XLV, No. 52, December 25, 2010.

5. Dholakia, R. H. (2009): “Regional Sources of Growth Acceleration in India”, Working Paper No. 2009-03-06, Indian Institute of Management, Ahmedabad, India.

6. Fisher, A.G.B., (1939): “Production, primary, secondary and tertiary”, Economic Record, Vol. 15, pp. 24–38.

7. Fujita, K. (2012): “Development Strategy in Bihar through Revitalizing the Agricultural Sector: A Preliminary Analysis”, IDE Discussion Paper No. 332, Institute of Development Economies, JETRO, Chiba, Japan.

8. GoB (2007): Economic Survey 2006-07, Finance Department, Government of Bihar, March.

9. - (2009): Economic Survey 2008-09, February, Finance Department.

10. – (2010): Economic Survey 2009-10, March, Finance Department.

11. Kalirajan, K. and Singh, K. (2013): “Understanding Sectoral Economic Growth in India: The Potential for Services”, Institutions and Economies, Vol. 5, No. 1, April 2013, pp. 91-112.

12. Kuznets, S. (1971): Nobel Prize Lecture. (Available at:http://www.nobelprize.org/nobel_prizes/economics/laureates/1971 /kuznets-lecture.html; accessed 18th April 2012).

13. Misra, B. (2010): “Changing Dimensions of India’s Growth Process: A State Level Analysis”, MPRA Paper No. 21848, available at http:/mpra.ub.uni-muenchen.de/21848/

14. Mukherji, A. and Mukherji, A. (2012): “Bihar: What Went Wrong? And What Changed?”, Working Paper No. 2012-107, September, 2012, National Institute of Public Finance and Policy, New Delhi.

15. Nachane, D. M., Ray, P. and Ghosh, S. (2002): “Does Monetary Policy Have Differential State-Level Effects? An Empirical Evaluation”, Economic and Political Weekly, November 23, 2002, pp. 4723 – 4728.

16. Panda, R. C. (2008): “Paradigm Shifts in Growth Perspectives of Indian Economy”, The Journal of Income and Wealth, Vol. 30, No. 1, January-June, 2008.

17. Pangotra, P. and Govil, A. (2008): “Urban Development Strategy for Bihar: A Management Perspective”, Working Paper No. 2008-04-02, Indian Institute of Management, Ahmedabad, India.

18. Saravanan, S. and Durai, A. J. (2012): “Growth Pattern Disparities: An Inter-state and Inter-state Analysis”, Atlantic Review of Economics, Vol. 2.

19. Schultz, T.W. (1978): Distortions of Agricultural Incentives, Bloomington: Indiana University Press.

20. Sharma, A. N. (2005): “Agrarian Relations and Socio-Economic Change in Bihar”, Economic and Political Weekly, March 5, 2005, pp. 960-972.

21. Shetty, S. L. (2003): “Growth of SDP and Structural Changes in State Economies: Interstate Comparisons”, Economic and Political Weekly, Vol. 38, No. 49. Pp. 5189 – 5200. 22. Shingal, A. (2013): “Growth, Convergence and Trade: The Services Sector in India’s States”, Working Paper No. 2013/33, NCCR Trade Regulation, Swiss National Centre of Competence in Research.

23. Silva, E. G. and Teixeira, A. A. C. (2008): “Surveying Structural Change: Seminal Contributions and a Bibliometric Account”, Structural Change and Economic Dynamics, Vol. 19, pp. 273-300.

24. Syrquin, M. (2005): “Kuznets and Modern Economic Growth Fifty Years Later”, WIDER Conference: Thinking Ahead: The Future of Development Economics, Helsinki, June, 2005.

25. Tsujita, Y., Oda, H., and Ghosh, P. (2010): “Development and Intra-State Disparities in Bihar”, Economic & Political Weekly, Vol. XLV, No. 50, December 11, 2010