Publication

This background brief analyzes the economic state and development of the Indian Federal State of Kerala using a path dependence approach. It suggests that Kerala's industrial backwardness is due to a path-dependent process of industrialization. The paper introduces the concept of path dependence, examines features of Kerala's labor market and industrial sector and traces the evolution of the regional industry. Subsequently, problems in growth and alternative paths for industrialization are discussed. The author argues that policy decisions from the 1930s continue to have implications for Kerala's present economic situation.