Shift Share Analysis and the Urban Informal Manufacturing Sector in Assam

Abstract

The paper tries to analyze how the local economy of Assam is behaving at the national level in terms of the growth of the informal economy, which is perceived as the next engine of growth for the Indian economy. Shift Share Analysis (SSA) is used to attain this objective. It is found that, compared to the All India level, the period from 1994-95 to 2000-01 has been a period of slow growth of the Informal manufacturing sector(IMS) in the state, whereas the later period from 2000-01 to 2005-06 has been a period of faster growth. It is interesting to note that the Non Directory Manufacturing Enterprises and the Directory Manufacturing Enterprises which were responsible for the slower growth of the IMS in the early period (from 1994-95 to 2000-01), has turned out to be the major contributor of faster growth in the later period (from 2000-01 to 2005-06).