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Will services be the new engine of economic growth in India?

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Author Info
Ajit Singh
Sukti Dasgupta

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Abstract

This paper revisits the role of manufacturing and services in economic development in the light of the following new facts: (a) a faster growth of services than that of manufacturing in many developing countries (DCs). (b) The emergence of Òde-industrialisationÓ in several DCs at low levels of per capita income. (c) Jobless growth in the formal sector even in fast growing countries such as India and (d) a large expansion of the informal sector in both fast growing and slow growing DCs. Although the paper examines these phenomena in the specific case of the Indian economy, the analysis has much wider application, both for economic policy and for theories of growth and structural change.

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Paper provided by ESRC Centre for Business Research in its series ESRC Centre for Business Research - Working Papers with number wp310.

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Date of creation: Sep 2005
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Handle: RePEc:cbr:cbrwps:wp310

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Related research
Keywords: manufacturing; services; de-industrialisation; developing countries;

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Find related papers by JEL classification:
O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ute Pieper, 2003. "Sectoral regularities of productivity growth in developing countries--a Kaldorian interpretation," Cambridge Journal of Economics, Oxford University Press, vol. 27(6), pages 831-850, November.
  2. James P. F. Gordon & Poonam Gupta, 2004. "Understanding India’s Services Revolution," IMF Working Papers 04/171, International Monetary Fund. [Downloadable!]
  3. Martin Neil Baily & Robert Z. Lawrence, 2004. "What Happened to the Great U.S. Job Machine? The Role of Trade and Electronic Offshoring," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 35(2004-2), pages 211-284. [Downloadable!]
  4. Hansen, Jorgen Drud & Zhang, Jie, 1996. "A Kaldorian Approach to Regional Economic Growth in China," Applied Economics, Taylor and Francis Journals, vol. 28(6), pages 679-85, June. [Downloadable!] (restricted)
  5. Singh, Ajit, 1989. "Third World Competition and De-industrialisation in Advanced Countries," Cambridge Journal of Economics, Oxford University Press, vol. 13(1), pages 103-20, March.
  6. Dani Rodrik & Arvind Subramanian, 2004. "Why India Can Grow at 7 Percent a Year or More: Projections and Reflections," IMF Working Papers 04/118, International Monetary Fund. [Downloadable!]
  7. Singh, Ajit, 1977. "UK Industry and the World Economy: A Case of De-industrialisation?," Cambridge Journal of Economics, Oxford University Press, vol. 1(2), pages 113-36, June.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Singh, Lakhwinder, 2007. "India’s Economic Growth and the Role of Foreign Direct Investment," MPRA Paper 6427, University Library of Munich, Germany. [Downloadable!]
  2. Sukti Dasgupta & Ajit Singh, 2006. "Manufacturing, Services and Premature De-Industrialisation in Developing Countries: A Kaldorian Empirical Analysis," ESRC Centre for Business Research - Working Papers wp327, ESRC Centre for Business Research. [Downloadable!]
  3. Rath , Deba Prasad & Raj, Rajesh, 2006. "Analytics and Implications of Services Sector Growth in Indian Economy," MPRA Paper 10034, University Library of Munich, Germany, revised 2007. [Downloadable!]
  4. Ajit Singh, 2008. "The Past, Present and Future of Industrial Policy in India: Adapting to the Changing Domestic and International Environment," ESRC Centre for Business Research - Working Papers wp376, ESRC Centre for Business Research. [Downloadable!]
  5. Basu, Kaushik & Maertens, Annemie, 2007. "The Pattern and Causes of Economic Growth in India," Working Papers 07-08, Cornell University, Center for Analytic Economics. [Downloadable!]
    Other versions:
  6. Singh, Nirvikar, 2006. "Services-Led Industrialization in India: Assessment and Lessons," MPRA Paper 1276, University Library of Munich, Germany, revised Dec 2006. [Downloadable!]
  7. Alex Izurieta & Ajit Singh, 2008. "Does fast Growth in India and China harm U.S. Workers? Insights from Simulation Evidence," ESRC Centre for Business Research - Working Papers wp378, ESRC Centre for Business Research. [Downloadable!]
  8. Codrina Rada, 2007. "A growth model for a two-sector economy with endogenous productivity," Working Papers 44, United Nations, Department of Economics and Social Affairs. [Downloadable!]
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