JHASS
Trend and Growth of Capital Stock in Bihar During 1980-2017
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Abstract
This paper attempts to generate time series estimates of net fixed capital stock at disaggregate and aggregate level for Bihar for the period from 1980-81 to 2016-17 based on Kruger’s Approach (2003) to estimate initial capital stock and then the Perpetual Inventory Method (PIM) for subsequent years. The estimates measure the extent to which production activity increases wealth and creates the conditions needed to continue the production of goods and services in future. Bihar underwent a massive accelerated growth performance in generation of capital stock in Aggregate since occurrence of turning point in 2005-06. Growth of capital stock in Secondary Sector was lower than the overall economy but that in Tertiary Sector specially Transport; Storage & Communication; Trade, Hotel & Restaurant witnessed higher growth pattern since occurrence of turning point in 2005-06. Primary Sector, which has about one-fifth share in capital stock, showed decelerated growth performance since occurrence of turning point in 2000-01. Since capital stock is known to be the engine of growth, decelerated growth performance of primary sector (mainly agriculture in Bihar) and lower growth performance in secondary sector (manufacturing, electricity & construction) is a matter of concern for policy makers in the light of need of strong agriculture sector for Food Security and industrial & infrastructure development. Decelerated trend in capital stock during Twelfth Plan is also a matter of concern for developing economy of Bihar. There is dire need to focus on reorientation of investment planning and strategy.
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How to cite this paper
Trend and Growth of Capital Stock in Bihar During 1980-2017
How to cite this paper: Jitendra Kumar Sinha, Anurodh Kumar Sinha. (2020) Trend and Growth of Capital Stock in Bihar During 1980-2017. Journal of Humanities, Arts and Social Science, 4(1), 57-66.
DOI: http://dx.doi.org/10.26855/jhass.2020.01.008
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