India's Services Sector Growth : The Impact of Services Trade on Non-tradable Services

This paper examines the effect of tradable services growth on non-tradable services across Indian districts. The analysis uses a shift-share “Bartik-type” instrumental variable, which relies on changes in foreign demand shocks for tradable services...

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Main Authors:	Avdiu, Besart, Bagavathinathan, Karan Singh, Chaurey, Ritam, Nayyar, Gaurav
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2022
Subjects:	TRADABLE SERVICES NON-TRADABLE SERVICES FOREIGN DEMAND SHOCKS SERVICE SECTOR FEMALE EMPLOYMENT EMPLOYMENT INDIAN ECONOMIC CENSUSES SMALL SERVICE FIRMS ECONOMIC GROWTH STIMULATION
Online Access:	http://documents.worldbank.org/curated/en/099255006212237589/IDU058da6a290035604fc4081820c85c365125c4 http://hdl.handle.net/10986/37590

id	okr-10986-37590
recordtype	oai_dc
spelling	okr-10986-375902022-06-24T05:10:49Z India's Services Sector Growth : The Impact of Services Trade on Non-tradable Services Avdiu, Besart Bagavathinathan, Karan Singh Chaurey, Ritam Nayyar, Gaurav TRADABLE SERVICES NON-TRADABLE SERVICES FOREIGN DEMAND SHOCKS SERVICE SECTOR FEMALE EMPLOYMENT EMPLOYMENT INDIAN ECONOMIC CENSUSES SMALL SERVICE FIRMS ECONOMIC GROWTH STIMULATION This paper examines the effect of tradable services growth on non-tradable services across Indian districts. The analysis uses a shift-share “Bartik-type” instrumental variable, which relies on changes in foreign demand shocks for tradable services, weighted by the initial district employment shares in tradable services. Using multiple rounds of the Indian Economic Censuses, the findings show that an increase in tradable services employment leads to an increase in non-tradable services employment and increases the number of firms in non-tradable services. The evidence suggests that this positive impact is due to an increase in consumer demand for local non-tradable services that results from the growth in tradable services employment, and not due to sectoral linkages between tradable and non-tradable services sectors. The employment impact is much larger for female workers compared to male workers, and for the number of female-owned firms relative to male-owned firms. Further, the employment impact is only significant for small non-tradable service firms. 2022-06-23T17:22:05Z 2022-06-23T17:22:05Z 2022-06 Working Paper http://documents.worldbank.org/curated/en/099255006212237589/IDU058da6a290035604fc4081820c85c365125c4 http://hdl.handle.net/10986/37590 English Policy Research Working Papers;20094 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper Publications & Research India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	TRADABLE SERVICES NON-TRADABLE SERVICES FOREIGN DEMAND SHOCKS SERVICE SECTOR FEMALE EMPLOYMENT EMPLOYMENT INDIAN ECONOMIC CENSUSES SMALL SERVICE FIRMS ECONOMIC GROWTH STIMULATION
spellingShingle	TRADABLE SERVICES NON-TRADABLE SERVICES FOREIGN DEMAND SHOCKS SERVICE SECTOR FEMALE EMPLOYMENT EMPLOYMENT INDIAN ECONOMIC CENSUSES SMALL SERVICE FIRMS ECONOMIC GROWTH STIMULATION Avdiu, Besart Bagavathinathan, Karan Singh Chaurey, Ritam Nayyar, Gaurav India's Services Sector Growth : The Impact of Services Trade on Non-tradable Services
geographic_facet	India
relation	Policy Research Working Papers;20094
description	This paper examines the effect of tradable services growth on non-tradable services across Indian districts. The analysis uses a shift-share “Bartik-type” instrumental variable, which relies on changes in foreign demand shocks for tradable services, weighted by the initial district employment shares in tradable services. Using multiple rounds of the Indian Economic Censuses, the findings show that an increase in tradable services employment leads to an increase in non-tradable services employment and increases the number of firms in non-tradable services. The evidence suggests that this positive impact is due to an increase in consumer demand for local non-tradable services that results from the growth in tradable services employment, and not due to sectoral linkages between tradable and non-tradable services sectors. The employment impact is much larger for female workers compared to male workers, and for the number of female-owned firms relative to male-owned firms. Further, the employment impact is only significant for small non-tradable service firms.
format	Working Paper
author	Avdiu, Besart Bagavathinathan, Karan Singh Chaurey, Ritam Nayyar, Gaurav
author_facet	Avdiu, Besart Bagavathinathan, Karan Singh Chaurey, Ritam Nayyar, Gaurav
author_sort	Avdiu, Besart
title	India's Services Sector Growth : The Impact of Services Trade on Non-tradable Services
title_short	India's Services Sector Growth : The Impact of Services Trade on Non-tradable Services
title_full	India's Services Sector Growth : The Impact of Services Trade on Non-tradable Services
title_fullStr	India's Services Sector Growth : The Impact of Services Trade on Non-tradable Services
title_full_unstemmed	India's Services Sector Growth : The Impact of Services Trade on Non-tradable Services
title_sort	india's services sector growth : the impact of services trade on non-tradable services
publisher	World Bank, Washington, DC
publishDate	2022
url	http://documents.worldbank.org/curated/en/099255006212237589/IDU058da6a290035604fc4081820c85c365125c4 http://hdl.handle.net/10986/37590
_version_	1764487498073899008

India's Services Sector Growth : The Impact of Services Trade on Non-tradable Services

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