Rural occupational diversification in India: theory and evidence
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Rural organised manufacturing industries in India are essentially capitalist enterprises, with focus on profits. Economic theory points towards a link between profit rate and long-term growth in output. This thesis adopts this paradigm: it examines the profit rate of the rural organised manufacturing industries segment to assess its growth. This thesis also identifies the factors driving profit rate of this segment and develops an analytical model to explain the phenomenon underlying empirical observations, on the rural organised manufacturing industries segment.Existing studies on the rural economy have not examined profit rates to assess the growth of the rural economy as a whole or any part of it. Most existing studies use empirical evidence on the rapid increase in this sector’s workforce size, to explain the growth of the rural non-agricultural sector in India. Some studies explain this growth, using estimates of the share of this sector in the rural National Domestic Product. This thesis addresses this gap. The profit rate and output growth of urban organised manufacturing industries are also studied. We find that the profit rate of rural organised manufacturing industries grew faster than urban industries.
Supervisor: Debarshi Das
HUMANITIES AND SOCIAL SCIENCES