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All Journal International Journal of Finance Research
Prakash, Dipak
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Economics, Econometrics & Finance Social Sciences

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Analysis of Output and Employment of Trade in India: A Case of rising Capital Intensity and Its Implications Prakash, Dipak
International Journal of Finance Research Vol. 3 No. 2 (2022): International Journal of Finance Research
Publisher : Training & Research Institute - Jeramba Ilmu Sukses (TRI-JIS)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47747/ijfr.v3i2.759

Abstract

Trade is by far labour-intensive sector. The sector is dominated by unorganized activities. Though, post-1990s, the share of organized sector has been rising but at slow pace. Till 2003-04, the sector has grown well as a consequence, output has risen and concomitant increase in the share of employment has been noticed. From 2003-04 onwards a significant increase in capital intensity has been noticed which increased the productivity of the sector. Therefore, contribution of the sector in employment generation has decimated, despite the fact that there was no decline in output. Rise in capital intensity is attributed to formalisation of the sector and resultant increase in investment.
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