ECONOMIC GROWTH AND STRUCTURAL CHANGE- ANALYSIS FOR THE STATE OF HARYANA, 1993-94 TO 2017-18

In the pursuit of economic growth, structural change is not only inevitable but also desirable. Structural change refers to the shift of labour from lower-productivity sectors to higher-productivity sectors of the economy. The paper endeavours to examine the role of structural change in the economic growth process of Haryana from 1993-94 to 2017-18. The study employs SCI (Structural Change Index), which puts forth the evidence to support the presence of structural change in Haryana's economy. The study also uses McMillan and Rodrik's formula for decomposing economy-wide labour productivity growth and a simple method devised by the authors for decomposing sectoral labour productivity growth into the two components- the ‘within' effect and the ‘structural change' effect to understand the relationship between structural change and economic growth in Haryana. The values obtained are proof of the fact that structural change has been one of the crucial forces behind economic growth in Haryana. This study is an attempt to provide a direction for the policymakers to devise policies that promote structural change and hence, the economic growth