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:
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
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