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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. Brown, Gardner, Jr, 1974. "An Optimal Program for Managing Common Property Resources with Congestion Externalities," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 163-173, Jan.-Feb..
    2. Smith, Vernon L, 1969. "On Models of Commercial Fishing," Journal of Political Economy, University of Chicago Press, vol. 77(2), pages 181-198, March/Apr.
    3. Clark, Colin W. & Munro, Gordon R., 1975. "The economics of fishing and modern capital theory: A simplified approach," Journal of Environmental Economics and Management, Elsevier, vol. 2(2), pages 92-106, December.
    4. Clark, Colin W & Clarke, Frank H & Munro, Gordon R, 1979. "The Optimal Exploitation of Renewable Resource Stocks: Problems of Irreversible Investment," Econometrica, Econometric Society, vol. 47(1), pages 25-47, January.
    5. Wilen, James E., 2000. "Renewable Resource Economists and Policy: What Differences Have We Made?," Journal of Environmental Economics and Management, Elsevier, vol. 39(3), pages 306-327, May.
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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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