Analysis of Spatial Aspects of Structural Change in Manufacturing Sector in India

Abstract

This paper tries to analyse the spatial aspects of structural change in manufacturing sector of India which is not discussed in the previous studies. The spatial aspects of structural change of manufacturing sector have been divided into two sections. The first section deals with the inter-state structural change and the second section takes into consideration regional aspects (viz. rural-urban) of structural change. It is found that for the maximum states in India, technology and capital play a significant role in the growth of the manufacturing sector. It somehow indicates to the capital intensive nature of manufacturing sector at the regional level. Further, manufacturing sector is rural areas is labour intensive and it is capital intensive in urban areas. Increasing returns to factor applies on labour in rural areas whereas a constant return to factor applies on capital in urban areas