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Impact Of Trade On Service Sector Employment In India

Author

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  • Arup Mitra

    (IEG)

Abstract

This study makes an attempt to assess the impact of trade liberalization on services sector employment. Based on the time series macro data, the elasticity of organised services sector employment with respect to value added and exports and imports have been estimated. After controlling for growth it is difficult to identify a positive and significant impact of international trade on employment in the organized service sector. We have also tried to work out the direct and indirect effects of exports and imports on employment after deciphering their effects included in overall growth. However, the positive effects are mostly negligible. For the informal or unorganized services sector employment the impact does not seem to be greatly different from what is observed in the case of the organized services sector employment. Also as per the company level data international trade does not seem to be an important determinant of employment in the services sector.

Suggested Citation

  • Arup Mitra, 2009. "Impact Of Trade On Service Sector Employment In India," Trade Working Papers 22929, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:tradew:22929
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    File URL: http://www.eaber.org/node/22929
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    References listed on IDEAS

    as
    1. K. Sundaram, 2007. "Employment and Poverty in India: 2000-2005," Working Papers id:1100, eSocialSciences.
    2. Sean M. Dougherty, 2009. "Labour Regulation and Employment Dynamics at the State Level in India," Review of Market Integration, India Development Foundation, vol. 1(3), pages 295-337, December.
    3. K. Sundaram, 2008. "Employment, Wages and Poverty in the Organized and the Unorganized Segments of the Non-Agricultural Sector in India; All-India, 2000-2005," Working papers 165, Centre for Development Economics, Delhi School of Economics.
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    Cited by:

    1. Woong Lee, 2017. "Trade Liberalization and the Aggregate Matching Function in India," Asian Economic Papers, MIT Press, vol. 16(1), pages 120-137, Winter/Sp.
    2. Deepak Kumar Behera, 2018. "Determinants of Employment Potential in India’s Service Sector: The Post-reform Experience," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 61(4), pages 639-657, December.

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    More about this item

    Keywords

    Service sector; Growth; Employment; trade; India;
    All these keywords.

    JEL classification:

    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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