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Dynamics of Services Exports in India

Author

Listed:
  • Richa Khurana
  • D. K. Nauriyal

Abstract

The article examines the dynamics in specialization pattern of comparative advantage in services exports from India for the time period 2004–2013, while drawing a distinction between the pre- and the post-crisis trends. The analysis is based on a modified revealed symmetric comparative advantage index. It also employs the Galtonian regression and the Markovian transition matrices to study the distribution and intra-distribution dynamics of export patterns. The results reveal that India has a strong comparative advantage in modern services mainly business services and computer and information services. The findings suggest a stable but broadening pattern of specialization of India’s services exports. Further, the transition probabilities reveal that the chances of remaining in or switching to a state of comparative disadvantage are more pronounced than being or moving to a state of comparative advantage. Overall services exports exhibit high persistence in both the pre- and post-crisis period pointing towards a low impact of crisis on India’s services exports. JEL: C14, F14, L80

Suggested Citation

  • Richa Khurana & D. K. Nauriyal, 2017. "Dynamics of Services Exports in India," Millennial Asia, , vol. 8(2), pages 178-193, October.
    • Handle: RePEc:sae:millen:v:8:y:2017:i:2:p:178-193
    DOI: 10.1177/0976399617715823
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    References listed on IDEAS

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    More about this item

    Keywords

    Services trade; revealed comparative advantage; specialization dynamics; transition probability; mobility indices; India;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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