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Service Sector Impact on Economic Growth of Bihar: An Econometric Investigation

Rinky Kumari , Rinky Kumari

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Indian Journal of Agriculture Business 6(1):p 15-26, . | DOI: http://dx.doi.org/10.21088/ijab.2454.7964.6120.2
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Rinky Kumari. Service Sector Impact on Economic Growth of Bihar: An Econometric Investigation. Indian Journal of Agriculture Business 2020;6(1):15–26.
 

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Abstract

The objective of this study is to examine the service sector impacts on economic growth of Bihar, since it plays an important role in contributing in Bihar’s GSDP. At the all India Level, services share has increased at a greater rate than industry after 2003-05 while in Bihar, services through have easily increased at a greater rate than agriculture. The economy of Bihar is largely service oriented, but it also has a significant agricultural base. This study discusses the nature of growth of services in Bihar and compare with the overall India level. This study also look into the sectoral contribution of services in Bihar and other important feature of the services led growth in the state. India has experience rapid change in the growth of service sector since 1990-91, to become the economy’s leading sector, during the same period services in Bihar have too upgrown. The study also find that there are variations in growth and performance of different sub-sectors of services. While the main contributors to services growth in India are transportation, trade, hotel and communication, the main contributors in Bihar are hotels, trades, and restaurants. After the economic reforms of the 1990s, the share of all the services subsectors in GDP has increased. The share of financing, trade and transport sectors in total services sector has increased while that of community, social and personal services has declined.

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  • Rinky Kumari
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  • Rinky Kumari
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Cite this article

Rinky Kumari. Service Sector Impact on Economic Growth of Bihar: An Econometric Investigation. Indian Journal of Agriculture Business 2020;6(1):15–26.
 

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DOI: http://dx.doi.org/10.21088/ijab.2454.7964.6120.2
Keywords Service Sector; Gross State Domestic Product (GSDP); Bihar

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