ABSTRACT
This chapter focuses on the manufacturing sector within the non-agricultural sector as the linkages between agriculture and the non-agricultural sectors are likely to be more important in this sector. It estimates the output of organized manufacturing sector as a function of its inputs and linked the output of unorganized sector to the output of organized sector. The chapter attempts to incorporate explicitly a production function for the manufacturing sector within the framework of varying coefficients model. Derivation of optimal levels of investment requires assumptions relating to efficiency, technical progress and prices for the life period of capital stock. The impact of consumer price inflation has to be interpreted in terms of its linkage to nominal wage rate. The main sectors contributing to GDP besides agriculture and manufacturing are: mining and quarrying, construction, electricity, gas and water supply, transportation, storage and communications, trade, hotels and restaurants, banking, insurance and financial services, public administration and defense and other services.
