India's Service Sector Growth a “New” Revolution

Indias Service Sector Growth A youthful Revolution Preliminary Draft Dinesh Khairnar Abstract Following the trade liberalization in 1991, the Indian delivery embarked on a path of rapid product of aggregate take. In particular, it witnessed a high growth treasure of usefulness sector output while that of constancy was relatively muted. As a result, the share of services in GDP has come to resemble that of a high income farming while its per capita income still remains that of a low income country. Further, we in like manner observe a sharp increase in the rate of growth of service sector trade after liberalization. In this paper, we build a quantitative model which captures a move share of agricultural output and a rapidly increase share of service sector output as the sparing grows. We develop a three sector open economy growth model and allow the economy to trade with the counterweight of the world by exporting as well as importing services and industrial ? Email address:khairnar.dinesh52@gmail.com. * goods. We focus on two steady state years, 1970 and 1994, and assume trade to be balanced in these two years. In addition, we allow for exogenous productivity growth in each of the three sectors.

We ?nd that it is high productivity growth, especially in the service sector, quite an than growth of trade in services which is the primary work out driving the high growth witnessed by the Indian service sector. 2 1 Introduction Figure 1 1 shows the evolution of Indias real(a) GDP (Gross interior(prenominal) Product) per capita from 1965 to 2004. During this period, Real GDP per capita increased from 186 to 538 2000 US dollars, with an acceleration get-go in the 1980s and getting higher during the 1990s. In particular, Real GDP per capita grew at an average annual rate of 1.2 portion from 1965-1980 and increased to 3.5 pct during the 1980s and grew at 4 percent thereafter, starting from 1991. A careful look at the disaggregated output level in ?gure 2 reveals the pattern... If you want to get a full essay, order it on our website: Ordercustompaper.com

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!