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Service Sector Growth in China and India: A Comparison

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  • Yanrui Wu

    (UWA Business School, The University of Western Australia)

Abstract

China and India have recently achieved spectacular economic growth. However, services in these two Asian giants have played a very different role. In India, the service sector contributes to more than 54 per cent of GDP while its GDP share in China is much smaller (below 41 per cent in 2004). To provide an explanation for the contrasting trajectories, this paper examines and compares service sector developments in these two Asian giants. It investigates the determinants of demand for services and sheds light on the outlook for service sector growth in the two countries.

Suggested Citation

  • Yanrui Wu, 2007. "Service Sector Growth in China and India: A Comparison," Economics Discussion / Working Papers 07-04, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:07-04
    as

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    References listed on IDEAS

    as
    1. Park, Se-Hark, 1989. "Linkages between industry and services and their implications for urban employment generation in developing countries," Journal of Development Economics, Elsevier, vol. 30(2), pages 359-379, April.
    2. Mrs. Poonam Gupta & Mr. James P. F. Gordon, 2004. "Understanding India’s Services Revolution," IMF Working Papers 2004/171, International Monetary Fund.
    3. repec:wbk:wbpubs:12426 is not listed on IDEAS
    4. World Bank, 2005. "World Development Indicators 2005," World Bank Publications - Books, The World Bank Group, number 12425.
    5. Jagdish N. Bhagwati, 1984. "Splintering and Disembodiment of Services and Developing Nations," The World Economy, Wiley Blackwell, vol. 7(2), pages 133-144, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Douhan, Robin & Nordberg, Anders, 2007. "Is the elephant stepping on its trunk? The problem of India´s unbalanced growth," Working Paper Series 2007:16, Uppsala University, Department of Economics.
    2. Shingal, ANIRUDH, 2010. "Services growth and convergence: Getting India’s states together," MPRA Paper 32813, University Library of Munich, Germany.
    3. Manjit Sharma & Pushpak Sharma, 2019. "Dynamics of Employment and Economic Growth: A Comparative Study of China and India," Millennial Asia, , vol. 10(3), pages 417-437, December.
    4. Ortuño-Padilla, Armando & Espinosa-Flor, Aitor & Cerdán-Aznar, Lara, 2017. "“Development strategies at station areas in southwestern China: The case of Mianyang city”," Land Use Policy, Elsevier, vol. 68(C), pages 660-670.
    5. Uwitonze, Eric & Heshmati, Almas, 2016. "Service Sector Development and its Determinants in Rwanda," IZA Discussion Papers 10117, Institute of Labor Economics (IZA).
    6. Yanrui Wu, 2008. "Comparing Regional Development in China and India," WIDER Working Paper Series RP2008-13, World Institute for Development Economic Research (UNU-WIDER).
    7. Nath, Hiranya K. & Liu, Lirong & Tochkov, Kiril, 2015. "Comparative advantages in U.S. bilateral services trade with China and India," Journal of Asian Economics, Elsevier, vol. 38(C), pages 79-92.
    8. Muhammad Salam & Javed Iqbal & Anwar Hussain & Hamid Iqbal, 2018. "The Determinants of Services Sector Growth: A Comparative Analysis of Selected Developed and Developing Economies," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 57(1), pages 27-44.
    9. Hiranya K. Nath & Binoy Goswami, 2018. "India’s comparative advantages in services trade," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 8(2), pages 323-342, August.
    10. John C. Anyanwu & Joanna C. Anyanwu, 2018. "Accounting for the Rising Value Added in Services Compared to That in Agriculture in African Economies," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 6(4), pages 476-500, December.
    11. Kausik Gangopadhyay & Debasis Mondal & Thasni T, 2024. "The Decomposition of Productivity Growth for India: Before and After 1991," IIM Kozhikode Society & Management Review, , vol. 13(1), pages 90-100, January.
    12. Mallick, Jagannath, 2017. "Structural Change and Productivity Growth in India and the People’s Republic of China," ADBI Working Papers 656, Asian Development Bank Institute.

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    Keywords

    China and India; Asia; service sector; growth determinants and regression analysis;
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