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Services globalization and sub-national demand linkages: The case of India

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  • Anirudh Shingal

    (World Trade Institute, University of Bern, Hallerstrasse 6, 3012 Bern, Switzerland)

Abstract

The role of services globalization in inclusive growth is already getting attention in the literature. We add to this literature using India as a case study. India's state-level services value added and employment data studied in this paper reveal that globalization-induced opportunities are filtering down to the country's high per capita income states. More significantly, our empirical analysis, motivated by the New Economic Geography literature and the work of Davis and Weinstein (1996, 1999, 2003), suggests that these opportunities are also creating demand linkages throughout the country. Moreover, the wider network of sub-national demand linkages may be getting formed independently of historical income, skill or locational advantages, which has potentially generalizable implications for other services-globalization-led economies.

Suggested Citation

  • Anirudh Shingal, 2014. "Services globalization and sub-national demand linkages: The case of India," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-23.
    • Handle: RePEc:wsi:jicepx:v:05:y:2014:i:01:n:s179399331440002x
    DOI: 10.1142/S179399331440002X
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    References listed on IDEAS

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    1. Donald R. Davis & David E. Weinstein, 1996. "Does Economic Geography Matter for International Specialization?," Harvard Institute of Economic Research Working Papers 1773, Harvard - Institute of Economic Research.
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    6. Barry Eichengreen & Poonam Gupta, 2010. "The Service Sector as India’s Road to Economic Growth?," Development Economics Working Papers 23030, East Asian Bureau of Economic Research.
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    8. Johansen, Soren, 1995. "Likelihood-Based Inference in Cointegrated Vector Autoregressive Models," OUP Catalogue, Oxford University Press, number 9780198774501.
    9. Pesaran, H.M., 2003. "Estimation and Inference in Large Heterogeneous Panels with Cross Section Dependence," Cambridge Working Papers in Economics 0305, Faculty of Economics, University of Cambridge.
    10. Deepita Chakravarty, 2005. "Growing Services in India - An Inter-Sectoral Analysis Based on State-Level Data," Macroeconomics Working Papers 22384, East Asian Bureau of Economic Research.
    11. Amin, Mohammad & Mattoo, Aaditya, 2008. "Human capital and the changing structure of the Indian economy," Policy Research Working Paper Series 4576, The World Bank.
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    Cited by:

    1. Xiaobo He & Christopher Findlay, 2014. "Policy restrictions and services performance: Evidence from 32 countries," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-19.

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    More about this item

    Keywords

    Services globalization; India; states; growth; demand; C23; O11; O53; R11;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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