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Human capital and the Indian software industry

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  • Ashish Arora
  • Surendra K. Bagde

Abstract

Though previous studies have noted the role of skilled labor in the growth of the Indian software industry, they have not empirically investigated its importance. In this study we study the effect of the supply of engineers, measured by engineering baccalaureate capacity, on the regional growth of the software exports between 1990 and 2003. We find significant effect of engineering baccalaureate capacity on the growth of software exports even after controlling for other relevant factors. This conclusion is especially interesting because much of this capacity is due to private, rather than publicly supported colleges, and testifies to the private willingness to invest in human capital even in poor countries.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16167.

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Date of creation: Jul 2010
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Publication status: published as ―Human capital and the Indian software industry‖ (with Surendra Bagde) in Krishnendu Ghoshdastidar (ed). Essays in Honour of Professor Anjan Mukhejee‖, Oxford University Press. Forthcoming. (Revised version of NBER working paper, 16167.)
Handle: RePEc:nbr:nberwo:16167

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  1. Suma S. Athreye, 2005. "The Indian software industry and its evolving service capability," Industrial and Corporate Change, Oxford University Press, vol. 14(3), pages 393-418, June.
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Cited by:
  1. Amparo Castelló-Climent & Abhiroop Mukhopadhyay, 2011. "Mass Education or a Minority Well Educated Elite in the Process of Development: the Case of India," CEP Discussion Papers, Centre for Economic Performance, LSE dp1086, Centre for Economic Performance, LSE.
  2. Jain, Tarun, 2011. "Common tongue: The impact of language on economic performance," MPRA Paper 34423, University Library of Munich, Germany.
  3. Ashish Arora & Alfonso Gambardella, 2005. "The Globalization of the Software Industry: Perspectives and Opportunities for Developed and Developing Countries," NBER Chapters, in: Innovation Policy and the Economy, Volume 5, pages 1-32 National Bureau of Economic Research, Inc.
  4. Castelló-Climent, Amparo & Mukhopadhyay, Abhiroop, 2013. "Mass education or a minority well educated elite in the process of growth: The case of India," Journal of Development Economics, Elsevier, Elsevier, vol. 105(C), pages 303-320.

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