Publication

In light of the debate about what sector can provide the fastest path out of poverty for developing countries, this paper looks at the five important criteria any sector must exhibit in order to lead an economy to rapid, sustained, and inclusive development. They include 1) a high level of productivity; 2) high growth rates coupled with economic convergence; 3) be expanding in resources use; 4) match its resource requirements with a country’s endowments; and 5) be able to be traded.The authors then compare the performance of manufacturing against service sectors in India using these criteria.