In the last chapter, the dimensions and directions of the growth of output and inputs were discussed for the economy as a whole. In this chapter, we shall look at the ‘development’ aspects of the growth process, i.e. the structural changes which involve the inter-sectoral shift of resources. In the first section quantitative data concerning changes in the shares of the various major sectors in total employment and output are presented and discussed. The treatment follows the familiar FisherClark-Kuznets approach.1 Next, we shall examine the precise relationship between the changes in sectoral shares of national product and the process of growth by econometric methods along the lines of Chenery and associates.2
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