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India's surge in Modern Services Exports: Empirics for policy

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  • SAHOO, Pravakar
  • KUMAR DASH, Ranjan

Abstract

India’s exports of modern services have grown consistently over the last three decades and more so since 1991. Sustaining Modern Services Exports (MSEs), which in India enjoy comparative advantage, is important for sustaining service-led growth and maintaining stability on the external sector. In this context, we examine key drivers of India’s surge in MSEs which have important implications for policy. The results reveal that endowment factors such as human capital, teledensity, financial development, physical infrastructure and institutions are the key drivers of India’s MSEs along with the world demand, exchange rate and foreign direct investment. Therefore, India needs to focus on and speed up the ongoing reforms to improve supply side factors such as education, infrastructure, financial sector deepening, governance and broadband teledensity to improve competitiveness of India’s modern services exports.

Suggested Citation

  • SAHOO, Pravakar & KUMAR DASH, Ranjan, 2014. "India's surge in Modern Services Exports: Empirics for policy," Working Papers 2014010, University of Antwerp, Faculty of Applied Economics.
  • Handle: RePEc:ant:wpaper:2014010
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    Cited by:

    1. Kant, Chander, 2016. "Are institutions in developing countries malleable?," Journal of Policy Modeling, Elsevier, vol. 38(2), pages 272-289.
    2. repec:spr:eurase:v:8:y:2018:i:2:d:10.1007_s40822-018-0098-0 is not listed on IDEAS
    3. Sahoo, Pravakar & Dash, Ranjan Kumar, 2014. "India's surge in modern services exports: Empirics for policy," Journal of Policy Modeling, Elsevier, vol. 36(6), pages 1082-1100.

    More about this item

    Keywords

    India; Modern Services Exports; Human capital; Finance; infrastructure;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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