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Human capital and the Indian software industry

  • Ashish Arora
  • Surendra K. Bagde

Though previous studies have noted the role of skilled labor in the growth of the Indian software industry, they have not empirically investigated its importance. In this study we study the effect of the supply of engineers, measured by engineering baccalaureate capacity, on the regional growth of the software exports between 1990 and 2003. We find significant effect of engineering baccalaureate capacity on the growth of software exports even after controlling for other relevant factors. This conclusion is especially interesting because much of this capacity is due to private, rather than publicly supported colleges, and testifies to the private willingness to invest in human capital even in poor countries.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16167.

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Date of creation: Jul 2010
Date of revision:
Publication status: published as ―Human capital and the Indian software industry‖ (with Surendra Bagde) in Krishnendu Ghoshdastidar (ed). Essays in Honour of Professor Anjan Mukhejee‖, Oxford University Press. Forthcoming. (Revised version of NBER working paper, 16167.)
Handle: RePEc:nbr:nberwo:16167
Note: PR
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  1. Suma S. Athreye, 2005. "The Indian software industry and its evolving service capability," Industrial and Corporate Change, Oxford University Press, vol. 14(3), pages 393-418, June.
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