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Impact Of Trade On Service Sector Employment In India

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  • Arup Mitra

    (IEG)

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    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.

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    File URL: http://saber.eaber.org/node/22929
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    Bibliographic Info

    Paper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 22929.

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    Date of creation: Jan 2009
    Date of revision:
    Handle: RePEc:eab:tradew:22929

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    Related research

    Keywords: Service sector; Growth; Employment; trade; India;

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    1. Sean Dougherty, 2008. "Labour Regulation and Employment Dynamics at the State Level in India," OECD Economics Department Working Papers 624, OECD Publishing.
    2. K. Sundaram, 2007. "Employment and Poverty in India: 2000-2005," Working Papers id:1100, eSocialSciences.
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