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Service boom in the Indian economy: an analysis of causal influences


  • Madhusudan Datta


The article decomposes the influence behind the growth of service activities in the Indian economy over the last three decades into three components -- the final demand effect, input structure effect and reallocation effect -- and makes empirical assessments thereof. In terms of the influences, the behaviour of the group of services used basically as intermediate inputs, designated as category-I services, was distinct from the rest of heterogeneous services combined as ‘community, social and personal services’. The study finds that apart from the final demand effect, the other two influences too played very important but different roles in different phases of growth.

Suggested Citation

  • Madhusudan Datta, 2012. "Service boom in the Indian economy: an analysis of causal influences," Applied Economics, Taylor & Francis Journals, vol. 44(8), pages 987-998, March.
  • Handle: RePEc:taf:applec:44:y:2012:i:8:p:987-998
    DOI: 10.1080/00036846.2010.528373

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    References listed on IDEAS

    1. Shahid Yusuf & M. Anjum Altaf & Kaoru Nabeshima, 2004. "Global Production Networking and Technological Change in East Asia," World Bank Publications, The World Bank, number 14918, July.
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    Cited by:

    1. Datta, Madhusudan & Neogi, Chiranjib & Sinha, Abhrajit, 2015. "Sectoral shares in Indian GDP: How to regard it?," Structural Change and Economic Dynamics, Elsevier, vol. 35(C), pages 1-11.

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