{"title":"Productivity and Exports: An Industry-Level Analysis of the Service Sector in India","authors":"Asmita Goswami, K. Narayanan","doi":"10.1177/09763996231177437","DOIUrl":null,"url":null,"abstract":"The large share of the service sector and its status as a net exporter raise concerns about the sustainability of such growth for a developing economy like India. Given the context, the present article attempts to examine the productivity dynamics of the service sector in India at the industry level. We use the India KLEMS dataset to identify the trends in total factor productivity (TFP) growth and the growth in factor inputs. By uniquely combining the India KLEMS dataset with the trade values in the Extended Balance of Payments Services classification, we examine the dynamics between TFP growth and exports of services using panel vector autoregression technique. The trends in factor inputs show that there is capital deepening within services and the growth in employment remained comparatively lower. The results indicate a feedback effect of exports and productivity growth within the service sector. Additionally, we note that the use of more skilled labour that is better equipped to handle new technology also contributes to growth in the service sector, both in terms of productivity and exports.","PeriodicalId":41791,"journal":{"name":"Millennial Asia","volume":null,"pages":null},"PeriodicalIF":1.3000,"publicationDate":"2023-07-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Millennial Asia","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1177/09763996231177437","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"AREA STUDIES","Score":null,"Total":0}
引用次数: 0
Abstract
The large share of the service sector and its status as a net exporter raise concerns about the sustainability of such growth for a developing economy like India. Given the context, the present article attempts to examine the productivity dynamics of the service sector in India at the industry level. We use the India KLEMS dataset to identify the trends in total factor productivity (TFP) growth and the growth in factor inputs. By uniquely combining the India KLEMS dataset with the trade values in the Extended Balance of Payments Services classification, we examine the dynamics between TFP growth and exports of services using panel vector autoregression technique. The trends in factor inputs show that there is capital deepening within services and the growth in employment remained comparatively lower. The results indicate a feedback effect of exports and productivity growth within the service sector. Additionally, we note that the use of more skilled labour that is better equipped to handle new technology also contributes to growth in the service sector, both in terms of productivity and exports.
期刊介绍：
Millennial Asia: An International Journal of Asian Studies is a multidisciplinary, refereed biannual journal of the Association of Asia Scholars (AAS)–an association of the alumni of the Asian Scholarship Foundation (ASF). It aims to encourage multifaceted, multidisciplinary and interdisciplinary research on Asia, in order to understand its fast changing context as a growth pole of global economy. By providing a forum for Asian scholars situated globally, it promotes dialogue between the global academic community, civil society and policy makers on Asian issues. The journal examines Asia on a regional and comparative basis, emphasizing patterns and tendencies that go beyond national borders and are globally relevant. Modern and contemporary Asia has witnessed dynamic transformations in cultures, societies, economies and political institutions, among others. It confronts issues of collective identity formation, ecological crisis, rapid economic change and resurgence of religion and communal identifies while embracing globalization. An analysis of past experiences can help produce a deeper understanding of contemporary change. In particular, the journal is interested in locating contemporary changes within a historical perspective, through the use of interdisciplinary and multidisciplinary approaches. This way, it hopes to promote comparative studies involving Asia’s various regions. The journal brings out both thematic and general issues and the thrust areas are: Asian integration, Asian economies, sociology, culture, politics, governance, security, development issues, arts and literature and any other such issue as the editorial board may deem fit. The core fields include development encompassing agriculture, industry, regional trade, social sectors like health and education and development policy across the region and in specific countries in a comparative perspective.
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