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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.

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Bibliographic Info

Paper provided by The University of Western Australia, Department of Economics in its series Economics Discussion / Working Papers with number 07-04.

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Length: 21 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:uwa:wpaper:07-04

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

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References

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  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. Poonam Gupta & James P. F. Gordon, 2004. "Understanding India’s Services Revolution," IMF Working Papers 04/171, International Monetary Fund.
  3. World Bank, 2005. "World Development Indicators 2005," World Bank Publications, The World Bank, number 12426, March.
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Cited by:
  1. Douhan, Robin & Nordberg, Anders, 2008. "Is the Elephant Stepping on its Trunk? The Problem of India's Unbalanced Growth," Working Paper Series 778, Research Institute of Industrial Economics.
  2. Shingal, ANIRUDH, 2010. "Services growth and convergence: Getting India’s states together," MPRA Paper 32813, University Library of Munich, Germany.
  3. Wu, Yanrui, 2008. "Comparing Regional Development in China and India," Working Paper Series RP2008/13, World Institute for Development Economic Research (UNU-WIDER).

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