Structural change, Employment and Economic growth in Bihar, India: A disaggregated sector-wise analysis

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 8

Year of Publication : 2020

Authors : Dhananjay Kumar

10.14445/23939125/IJEMS-V7I8P124

How to Cite?

Dhananjay Kumar, "Structural change, Employment and Economic growth in Bihar, India: A disaggregated sector-wise analysis," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 8, pp. 179-187, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I8P124

Abstract:

Bihar's economy has been growing at a phenomenal rate since the last decade compared to the subdued growth rate in the90s. Such economic growth leads to structural changes in the economy in the form ofthe reallocation of economic factors within the different sectors of the economy. The increase of output with a reallocation of labor and employment composition is the silent feature of structural changes in the economy, and hence economic growth occurs as a result. Bihar, the most underprivileged state in India, drew attention due to rapid growth in late 2010. In this paper, a disaggregated sector-wise analysis is done to perceive the growth trend of the income and Employment in Bihar and the process of structural changes. This paper utilizes various development indicators data, income, and employment data from several rounds of employment surveys for more than two decades (i.e., 1993-94 to 2018-19). The analysis result shows that Bihar is in the phase of structural transformation, as is evident with a significant decline of income and workforce share of the primary sector and a continued positive growth rate of income. The sub-period analysis shows that Bihar has witnessed a golden period of growth during 2004-05 to 2011-12. Agriculture, construction, communication, and other services are the driving force toward the growth and structural change in the economy. Rural laborers are moving towards non-farm activity within rural areas and are much dynamic than the urban area.

Keywords:

Bihar, Structural change, Growth, Economic sectors, workforce.

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