Assistant Adviser, Department of Statistics and Information Management, Reserve Bank of India, Chennai
Online published on 23 May, 2013.
A balanced sectoral growth with positive sectoral linkage is considered as a healthy economic condition prevailing in a country. Development of one sector of the economy, if brings development of other sectors, paves way for the overall development of the country. Moreover, the affirmative inter sectoral linkage opens the path to sustainable development of the country.
This paper analyses inter- sectoral linkages in the Indian economy for the period from 1950–51 to 2010–11. The objective is to assess any long run relationship existing among the three major sectors of the economy by using Co-Integration Test and to assess the speed of adjustment of the sectors towards long run equilibrium by Error correction model.
