International Journal of Statistics and Applied Mathematics
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International Journal of Statistics and Applied Mathematics

2022, Vol. 7, Issue 4, Part B

Sector wise gross value added (GVA) in Odisha: A statistical analysis

Author(s): Pritipadma Sahu and Dr. Rajendra Gartia

Abstract: Gross value added(GVA) is an economic productivity metric that measures the contribution of a corporate subsidiary company, or municipality to an economy, producer, sector, or region.GVA is the output of the country less the intermediate consumption, which is the difference between gross output and net output. It is important because it is used to adjust GDP, which is key indicator of the state of a nation’s total economy. The Odisha’s economy is composed of mixture of economic activities related to 17 sectors i.e. Agriculture, Forestry, Fishing, Livestock, Mining and Quarrying, Manufacturing, Construction, Electricity, Gas, Water Supply & Other Utility Services, Transport by other means, Railway, Communication, Services related to Broadcasting Trade, Hotels and Restaurant, Financial services, Storage, Public Administration and Defence, and Other services. The present research study is a macro level attempt towards analyzing the regional variation in the growth of gross value added and comparing the sector wise contributions to the overall GVA of the state during the study period from 2011 to 2022. Pareto analysis which is a statistical technique in decision making will be used for the selection of a limited number of sectors i.e. Vital Few Sectors (VFS) that produce significant effect. It uses the Pareto principle(also known as the Juran’s 80/20 rule) the idea that efforts may be focused on these VFS that contribute 80 percent of total state GVA so that the remaining Trivial many Sectors (TMS) having contribution to 20 percent can automatically be benefitted in terms of raising the GVA level. The degree of Inequality among the VFS sectors is measured by the computation of Gini concentration ratio or Gini Coefficient. By considering the degree of inequality among VFS sectors the policy implications can be formulated to overcome the inequality level. The Pareto analysis and Gini Coefficient describes the sector wise contribution to overall GVA of Odisha and also these estimates helps in drawing up suitable planning, programs and policy implementation. The broad policy objectives Thus, formulation of broad policy objectives is necessary for the under developed sectors i.e. Trivially Many Sectors (TMS) sectors. The best and appropriate development program can be formulated to remove inter sector wise disparities contributing to GVA.

Pages: 128-135 | Views: 43 | Downloads: 7

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How to cite this article:
Pritipadma Sahu, Dr. Rajendra Gartia. Sector wise gross value added (GVA) in Odisha: A statistical analysis. Int J Stat Appl Math 2022;7(4):128-135.
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