Open Access Journal of Economic Research
- ISSN: 3065-9035
Jitendra Kumar Sinha
This study investigates the impact of investments in the agriculture and allied, Industry, and Services sectors on the economic growth of Bihar, an underdeveloped Indian state prone to frequent natural calamities, including the COVID-19 pandemic over the past two years. Structural relationships are formulated to elucidate the interconnectedness between sectoral growth and investment. The stationarity of variables is evaluated using the Augmented Dickey-Fuller test. Ordinary Least Squares (OLS) analysis is employed to estimate the structural relations, with particular attention to the contribution of investments in the agriculture and allied sectors to overall economic growth. Furthermore, alternative simulation scenarios are examined to advocate for increased public sector investment in Agriculture and allied sectors, aimed at promoting sustainable economic development. This comprehensive analysis offers technical insights into the crucial role of strategic investment in agriculture and allied sectors for attaining economic prosperity.