Sen, Chitrakalpa (2011): FDI in the Service Sector – Propagator of Growth for India?
Download (214kB) | Preview
The last two decades have witnessed an unprecedented growth of the Indian service sector. This paper aims to analyze the growth dynamics. This study intends to see whether the growth in FDI has any significant impact on the service sector growth and also investigates whether a growth in this sector causes the GDP to grow. The results suggest that there has been a significant positive impact of the FDI on services sector and this service sector growth has in turn a significant effect on the GDP. The study also looks into the sub-sectoral dynamics and indicates towards the fact that the trade, hotels and restaurants, transport, storage and communications sub-sector contributes the most in the growth of Indian service sector. Therefore FDI can be truly be used as a propagator of economic growth, via its favourable effect on the growth in the services sector. Finally, the study addresses the long running sustainability debate regarding the Indian service sector.
|Item Type:||MPRA Paper|
|Original Title:||FDI in the Service Sector – Propagator of Growth for India?|
|Keywords:||Service sector, FDI, Economic growth|
|Subjects:||F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies
C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General
|Depositing User:||Chitrakalpa Sen|
|Date Deposited:||03 May 2011 14:22|
|Last Modified:||01 Oct 2016 02:59|
• Banga, R., and B. Goldar, (2004). “Contribution of Services to Output Growth and Productivity in Indian Manufacturing: Pre And Post Reforms,” working paper 139, ICRIER.
• Banga, R., (2005), “Critical Issues in India’s Service-Led Growth.” Working paper no. 171, Indian Council for Research on International Economic Relations. (October).
• Bosworth B., Collins, S. M. and A. Virmani, (2007), Sources of Growth in the Indian Economy, NBER Working Paper No. 12901.
• Chenery, H.B., (1960), Patterns of Industrial Growth, American Economic Review, Vol. 57, pp 415-26.
• Clark, C., (1940), The Conditions of Economic Progress, London: Macmillan.
• Eichengreen, B. and P. Gupta, (2009), The Two Waves of Service Sector, NBER Working Paper No. w14968.
• Eichengreen, B. and P. Gupta, (2011), The Service Sector as India's Road to Economic Growth, NBER Working Paper No. w16757.
• Gordon, J. and P. Gupta, (2003), “Understanding India's Services Revolution”, Paper presented at the IMF-NCAER Conference A Tale of Two Giants: India’s and China’s Experience with Reform, November 14-16, 2003, New Delhi. 19
• Hansda, S. K., (2002b), Sustainability of Services and Services-Led Growth: An Input Output Exploration of the Indian Economy, RBI Papers.
• Kuznets, S., (1957), Quantitative Aspects of the Economic Growth of Nations, Economic Development and Cultural Change, supplement to Volume VII, No. 4, Part III.
• Robert W., Stapleton T. and R. Andrews, (2007), India's Services Sector: unlocking opportunity, Asian-Pacific Economic Literature, Vol. 22, Issue 1.
• Sirari, A. S. and N. S. Bohra, (2011), Foreign Direct Investment (FDI) in India Service Sector (A Study of Post Liberalization), International Journal of Economic Research, Vol 2, Issue 2, pp 10-18.