Excess Growth of Tertiary Sector

Excess Growth of Tertiary Sector B B Bhattacharya Arup Mitra IN response to our paper [Bhattacharya and Mitra, 1990] Nagaraj [1991) questions the empirical justification of the proposition concerning the excess growth of the tertiary sector. He presents some empirical evidence to indicate that the tertiary sector already had a high initial share in net domestic product and in subsequent years has grown slower than the secondary sector. He, however, concedes that during the period 1966-67 to 1976-77 the tertiary sector has grown faster than the secondary sector. But for the period as a whole (1950-51 to 1987-88) and especially in the eighties the tertiary sector has grown slower than the secondary sector. Also he argues that the rate of growth of the percentage share of tertiary sector in NDP has been slower than that of secondary sector.