Md. Samsur Jaman, L. Debendra Singh
Abstract: India's economic base was gradually shifted from agricultural-based to industrial and service -based country for the last 30 years. The purpose of this study was to investigate the effect of those structural changes on economic structures. In order to estimate the relationship between economic growth and economic structure a log ?linear model is used which is estimated using Newey-West methodology. For the result, an incremental employment in agricultural sector yielded a negative effect on the Indian economy. Also, an increase in employment in service sector was better than industrial sector in supporting economic growth. Thus, the government should give priority to service-based economy even though agricultural sector is the backbone of Indian economy.
Keywords: Newey-West methodology, Structural Changes, log-linear model, Unit root, Berlett Kernel procedure