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Exports of Services: Indian Experience in Perspective

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  • Eichengreen, Barry
  • Gupta, Poonam

Abstract

We survey India’s experience with exporting services. We show that the country’s experience is unique in that modern tradable services are a significantly larger share of GDP than in other countries at comparable levels of economic development. This has not always been the case, however; India’s out-performance is limited to recent years. Policy initiatives, from trade reform to liberalization of domestic industrial and service sectors, were important for jump-starting the process. Panel and country-specific regressions for a cross section of countries point to the importance of a range of additional factors: overall economic development, communications infrastructure, access to foreign technology, and spillovers between the merchandise and service exports. Importantly, however, these factors, jointly or individually, do not wipe out the significance of a dummy variable for India. India, evidently, is a significant outlier as an exporter of services, and even more so as the period proceeds.

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  • Eichengreen, Barry & Gupta, Poonam, 2012. "Exports of Services: Indian Experience in Perspective," MPRA Paper 37409, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37409
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    1. Gnangnon, Sèna Kimm, 2022. "Effect of the Duration of the Membership in GATT/WTO on Commercial Services Exports in Developing Countries," EconStor Preprints 262167, ZBW - Leibniz Information Centre for Economics.
    2. Eichengreen, Barry & Gupta, Poonam, 2012. "The Real Exchange Rate and Export Growth: Are Services Different?," MPRA Paper 43358, University Library of Munich, Germany.
    3. Ignatius Abasimi & Long Vorlak & Agus Salim & Xuan Li, 2019. "Determinants of Export Service in Selected West African Countries," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 5(2), pages 39-47.
    4. Manoranjan Sahoo, 2018. "Exchange Rate and Service Exports from India: A Nonlinear ARDL Analysis," Economics Bulletin, AccessEcon, vol. 38(2), pages 1090-1101.
    5. 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.
    6. Bahman Huseynli, 2023. "Effect of Exports of Goods and Services and Energy Consumption in Italy`s Service Sector," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 254-261, May.
    7. Gnangnon, Sèna Kimm, 2020. "Aid for Trade and Services Export Diversification in Recipient-Countries," EconStor Preprints 210467, ZBW - Leibniz Information Centre for Economics.
    8. Sèna K. Gnangnon, 2021. "Aid for Trade and services export diversification in recipient countries," Australian Economic Papers, Wiley Blackwell, vol. 60(2), pages 189-225, June.
    9. Gnangnon, Sèna Kimm, 2020. "Effect of Poverty on Services Export Concentration in Developing Countries," EconStor Preprints 223178, ZBW - Leibniz Information Centre for Economics.
    10. Sampriti Das & Amiya Sarma, 2021. "Growth Behaviour of India’s Export of Services, 1975–2018," Foreign Trade Review, , vol. 56(3), pages 301-321, August.
    11. Richa Khurana & D. K. Nauriyal, 2017. "Dynamics of Services Exports in India," Millennial Asia, , vol. 8(2), pages 178-193, October.
    12. Sangita Dutta Gupta & Ajitava Raychaudhuri & Sushil Kumar Haldar, 2015. "Determinants of Exports of Information Technology in India," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 16(1), pages 64-81, March.
    13. Basu, Deepankar & Das, Debarshi, 2015. "Service Sector Growth in India: A View from Households," UMASS Amherst Economics Working Papers 2015-10, University of Massachusetts Amherst, Department of Economics.
    14. Cassini, Lorenzo, 2023. "Path-dependent productive specialization: Should prematurely deindustrialized countries shift to a KIBS export-led strategy?," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 199-209.
    15. Gnangnon, Sèna Kimm, 2021. "Effect of Multilateral Trade Liberalization on Services Export Diversification," EconStor Preprints 229152, ZBW - Leibniz Information Centre for Economics.
    16. N.R. Bhanumurthy & Sukanya Bose & Swayamsiddha Panda, 2014. "Modelling India’s External Sector: Review and Some Empirics," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 8(4), pages 457-493, November.
    17. Pravakar Sahoo & Ranjan Kumar Dash, 2017. "What Drives India's Surge in Service Exports?," The World Economy, Wiley Blackwell, vol. 40(2), pages 439-461, February.

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    More about this item

    Keywords

    India; services; growth; services exports;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General

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