development in the methods of accounting in gujarat.
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The paper begins by discussing need for developing a regional accounting framework
and estimating relevant variables to formulate realistic growth targets and appropriate
development strategy in the reform era for the Gujarat State as a case. The study then
examines growth experience in various sectors of the state and derives growth potential
of the economy in medium and long term. Elementary regional accounting framework
and estimates of crucial macroeconomic aggregates at the state level in India are
attempted for the first time for Gujarat to derive implications on resource availability and
investment requirement to achieve alternative growth targets. The study finds that
Gujarat is a high saving society comparable to China and Korea, but invests much less
domestically. Although it a net importer internationally, it is a major net exporter within
the country. The paper also attempts to identify the prime movers or principal drivers of
the economic growth in the state by fitting a simultaneous equations model on the
recent time series data on Gujarat. Electricity, gas & water supply; storage &
communications; construction; real estates and rainfall are the prime movers in Gujarat.
The paper also examines the social and human development aspects and explores how
they can be integrated with the macroeconomic growth model in Gujarat. The paper
concludes by discussing strategic policy interventions to achieve the development goals
of the state.