In the following passage there are blanks, each of which has been numbered. These numbers are printed below the passage and against each, five words are suggested, one of which fits the blank appropriately. Find
out the appropriate word in each case. There is already an extensive empirical literature – often using growth accounts – that (31) these and other aspects of India’s economic growth. Many of the studies (32) one or more of the following topics. First, a number of analysts (33) focused on characterizing India’s economic performance at the most aggregate level. While there is agreement that growth did indeed improve during the past quarter
century, researchers have reached vary ing conclusions on some issues such as the timing and precise magnitude of this acceleration, and the relative importance of changes in domestic policy.. There are on-going discussions over the extent to which the current growth can be maintained and various means by (34) it might be increased.
Second, analysts have examined the behavior of particular output sectors. A number of authors have studied productivity in manufacturing – reaching a wide range of conflicting conclusions. However, as explained in detail by Goldar and Mitra (2002), differences in the findings can be (35) to a variety of measurement issues, such as the use of singe versus double deflation to construct estimates of real growth in manufacturing value added. Goldar (2004) provides a careful recent update showing that TFP growth in manufacturing (36) to have slowed in the post reform period – raising additional puzzles discussed below. However, (37,) difficulties in measuring employment within individual industries, our analysis focuses (38) on the broader industrial sector. The 3 studies that focus on India’s services sector (many of which discuss the issue of sustain-ability), and
those that discuss agriculture, are discussed in the body of the paper. Given the large body of prior research, many of the results to be discussed below (39) already well-known to those in the field. Nonethe-less, this paper seeks to make a contribution to that literature in a variety of ways. In particular, the growth accounting framework, com- bined with our emphasis on data issues, pulls together concerns that have typically been treated separately, and in some cases, raise implications that do not appear to have been (40) recognized. Our updated
growth accounts incorporate recent data revisions, some of which are quite large. They also provide new estimates for the contributions to overall growth of labor productivity growth within the major economic sectors
versus the gains from reallocation of labor and capital among the factors. Furthermore, we have examined a variety of additional data in our analysis of the role of capital accumulation – providing estimates of the returns to schooling for human capital, and reporting on trends in sectoral saving and investment, for phystcal capital. Thus, this paper is comprised of four remaining sections. The next section details the construction of growth accounts for India, with considerable attention paid to the quality of the underlying data.