Analyzing the Structural Change and Growth Relationship in India : State-Level Evidence

This paper examines the link between structural change and growth in India. It constructs indices of structural change, and performs a panel data analysis using data for India's 16 major states. It finds that there is one-way positive impact from structural change to growth for the period 2000-2006. This finding emerges only if one assumes that the disturbances are heteroskedastic, contemporaneously cross-sectionally correlated and autocorrelated of type AR(1)