IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

An Open Services Regime Recipe for Jobless Growth?

  • Suparna Karmakar

    (Indian Council for Research on International Economic Rela)

Registered author(s):

    Development economists' disfavour with services as a viable engine of growth has been expressed both through theoretical and empirical analysis. One of the stylized facts of development economics is that share of services in employment increases only with the rise in per capita incomes. The skepticism emanates from the observed relatively jobless nature of service sector growth, in particular in the low- and middle-income developing countries. However, given that services have becomes the main source of growth in even the lowest-income developing countries, new empirical evaluation of this thesis has become crucial. A second stylized fact openly acknowledges trade as a source of growth and development. International trade in services, and in particular in the developing countries, has remained significantly lower in comparison to its share in global output. Further, one of the notable trends in recent years has been the increasing importance of cross-border supply of services in economic activities of countries. But is this a sustainable and viable model of development? In view of the above, this paper reviews India's experience to understand how services sector liberalisation can generate (welfare) gains for developing countries, in particular vis--vis its employment generation potential. The analysis has been based on India's experience of an increasingly open service sector and reviews the different channels through which economic gains are garnered from openness to trade in services. But the lessons from this analysis extend far beyond India and are of interest to both developed and developing countries' policymakers concerned about sustaining the competitiveness of their domestic economy. ic activities of countries. But is this a sustainable and viable model of development? In view of the above, this paper reviews India's experience to understand how services sector liberalisation can generate (welfare) gains for developing countries, in particular vis--vis its employment generation potential. The analysis has been based on India's experience of an increasingly open service sector and reviews the different channels through which economic gains are garnered from openness to trade in services. But the lessons from this analysis extend far beyond India and are of interest to both developed and developing countries' policymakers concerned about sustaining the competitiveness of their domestic economy.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.icrier.org/publication/WORKING%20PAPER%20210.pdf
    Our checks indicate that this address may not be valid because: 404 Not Found (http://www.icrier.org/publication/WORKING%20PAPER%20210.pdf [301 Moved Permanently]--> http://icrier.org/publication/WORKING%20PAPER%20210.pdf). If this is indeed the case, please notify (G.K. Manjunath)


    Download Restriction: no

    Paper provided by Indian Council for Research on International Economic Relations, New Delhi, India in its series Indian Council for Research on International Economic Relations, New Delhi Working Papers with number 210.

    as
    in new window

    Length: 27 Pages
    Date of creation: Mar 2008
    Date of revision:
    Handle: RePEc:ind:icrier:210
    Contact details of provider: Postal: India Habitat Centre, Core 6A, Lodhi Road, New Delhi 110 003
    Phone: 91-11-4645218
    Fax: 91-11-462-0180
    Web page: http://www.icrier.res.in
    Email:


    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ind:icrier:210. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G.K. Manjunath)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.