This research aims to provide an understanding of the economic structure and structural change for the Indian economy at the national and regional levels applying the fundamental economic structure (FES) approach. The overarching problem addressed in this study is whether there are identifiable patterns of relations between various macro aggregates and economic transactions as revealed via input-output tables. Would identification of such patterns allow regional analysts to predict economic change? The FES construct implies that selected characteristics of an economy will vary predic tably with region size, as measured by gross national/regional product, population and total gross output. Jensen, Hewings and West discussed three approaches: ‘partitioned’, ‘tiered’, and ‘temporal’ to identify FES. This study utilizes the tiered approach. A linear and logarithmic regression models are used to identify the FES and non-FES cells for the Indian national and regional economies. The research questions addressed are: Does an identifiable FES exists for the Indian national and regional economies? What proportions of the cells are predictable? Can the 1968-90 temporal FES predict the 1993-94 input-output table and if the regional FES can predict the Punjab 1983-84 table? Does the temporal and regional FES manifest an enhanced understanding of the Indian economic structure? Small sample estimation issues are addressed using the maximum entropy econometrics and cross-entropy methods.

Felicia. Choc

Papers

The use of input-output analysis in planning