Bilateral Funding and Women s Empowerment

employment generation. There was an acceleration in the growth of manufacturing output in the 80s. It is therefore worth oamining the impact of this on employment in services. But an empirical investigation of this hypothesis can be done only at the cross- section level because time-series data on employment covers only the organised sector of the economy. The information on employment (principal category) from the National Sample Survey, 38th Round for 1983 and 43rd Round for 1987-88, are utilised for this purpose. The corresponding data on State Domestic Product are taken from the Central Statistical Organisation. The regression results (Table 2) however do not support the hypothesis mentioned above. Given tertiary sector income the partial elasticity of tertiary employment with respect to manufacturing (and also agricultural) sector income turns out to be statistically insignificant. It may be noted that the data on tertiary sector employment here includes that in public administration which is generally not influenced by multiplier linkages. However since data on employment in NSS 43rd Round does not give separate information on employment in public administration we could not separate it out from the total tertiary sector employ- ment. Despite this limitation we may broadly infer that not only income but also employment in services appear to be growing independent of the commodity sector growth. To conclude, neither income nor employment in services was significantly influenced by commodity sector .income, especially manufacturing income even in the high growth phases of the eighties. It is in this perspective that the excess growth of the tertiary sector and its implications for inflation and balance of payment deserve attention of the policy-makers.