Author Description

This Paper Explores The Causes Of India's Productivity Surge Around 1980, More Than A Decade Before Serious Economic Reforms Were Initiated. Trade Liberalization, Expansionary Demand, A Favorable External Environment, And Improved Agricultural Performance Did Not Play A Role. We Find Evidence That The Trigger May Have Been An Attitudinal Shift By The Government In The Early 1980s That Unlike The Reforms Of The 1990s, Was Probusiness Rather Than Promarket In Character, Favoring The Interests Of Existing Businesses Rather Than New Entrants Or Consumers. A Relatively Small Shift Elicited A Large Productivity Response, Because India Was Far Away From Its Income-possibility Frontier. Registered Manufacturing, Which Had Been Built Up In Previous Decades, Played An Important Role In Determining Which States Took Advantage Of The Changed Environment. Contents; I. Introduction; Ii. The Facts; Iii. Explanations That Donâ€?t Work; A. Was It A Favorable External Environment?; B. Aggregate Demand And Unsustainability Of 1980s Growth; C. External Liberalization; D. Was It The Green Revolution?; E. Was It Public Investment?; F. Was It €œinternalâ€? Liberalization?; Iv. Possible Explanation; V. Concluding Remarks; References Dani Rodrik, Arvind Subramanian. Description Based Upon Print Version Of Record. Includes Bibliographical References. English