ABSTRACT
In a p io n e e r in g p a p e r K a ldo r (1966) p u t fo rw ard th e v iew t h a t i n o rd e r f o r an economy to a c h ie v e a h ig h e r r a t e o f econom ic g row th i t i s n e c e s s a ry to r a i s e th e r a t e o f g row th o f m an u fa c tu r in g o u tp u t and t h i s co u ld be a c h ie v ed by t r a n s f e r s o f la b o u r from th e n o n -m an u fa c tu r in g to th e m anu fac t u r in g s e c to r . K a ldo r a rg u ed t h a t th e main en g in e o f t h i s g row th i s th e p re s e n c e o f V e rd o om 's Law in m an u fa c tu r in g . U sing c r o s s - s e c t i o n d a ta from tw e lv e c o u n t r i e s , K a ldo r t e s t e d V e rd oom f s Law and found i t to be b ro a d ly su p p o r te d .
