An Empirical Investigation on the Inter-Sectoral Linkages in India

This paper aims to study the inter-sectoral linkages in the Indian economy through an econometric exercise using co-integration models. Co-integration analysis in a multi-variate framework since the mid-1980s is carried out both at sectoral and sub-sectoral level. At the broad sectoral level, manufacturing and services sectors display strong long-run equilibrium relationship with each other, while agriculture and allied sector displays long-run relationship only with the manufacturing sector.