Inter-Sectoral Linkages in Haryana's Income: A Temporal Analysis

Based upon secondary time-series data for 29 years since 1970-71, an attempt was made to examine the nature of structural changes in Output and employment along with inter-sectoral linkages in the income of lhe Haryana state. Out of the two indexes (viz θ due to Moore (1978) and ξ (based upon Entropy measure)} adopted for measuring the pace of structural change, the latter turned out to be relatively superior because of its higher sensitivity to temporal changes. Value of the index pointed towards voluminous changes to have occurred in the Structure of Haryana's income. But, commensurate changes have not taken place in the structure of employment; through-out the study period, the share of secondary' sector in employment has remained virtually static. An index of structural imbalance obtained through, indicated that the latest four years' periad (1995-1998) under liberalisation regime has undergone structural distortions to a severe extent. Further, the nature of inter-sectoral linkages was gauged by subjecting trend-statianory series on income from each of the major aggregates to distributed logged modelling. The analysis revealed the presence of strong inter-linkages of income from each of primary and teritary sectors with the aggregated income. However, the all-important secondary sector has failed to exhibit perceptible forward and backward linkages with income from other sectors. Agro-processing industrialisation, especially in rural pockets, may act not only as a booster for the secondary sector but also assist in curbing the severity of structural distortions in the state's economy.