An econometric analysis of sectorial contribution to economic growth of Goa

Abstract

The study delves into the economic dynamics of Goa over a 26-year period, examining sector-wise contributions and their implications for the state's economic growth. Leveraging secondary data from credible sources like the RBI Handbook of Statistics and the Census Report, the research utilized various statistical tools including cointegration analyses, correlation studies, and causal inferences to explore relationships among Agriculture, Industry, Manufacturing, and Services vis-a-vis the state's Net State Domestic Product (NSDP). The findings reveal a significant shift in Goa's economic landscape, with a decline in the Agricultural sector's contribution, a steady ascent of the Service sector, and consistent roles played by Industry and Manufacturing. The statistical analyses depict the Manufacturing sector as statistically insignificant in influencing long-term economic growth. The research emphasizes the need for strategic interventions to rejuvenate the manufacturing sector for a more substantial contribution to Goa's economic growth. Additionally, the study highlights the vulnerability of Goa's economy to diverse factors and recommends balanced growth strategies across sectors to ensure sustained and diverse economic development in the state. Overall, this research contributes to a nuanced understanding of Goa's economic evolution and presents key insights into its economic trends and the interplay between different sectors and economic growth dynamics.