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Service Sector Growth in China and India: A Comparison

  • Yanrui Wu


    (UWA Business School, The University of Western Australia)

China and India have recently achieved spectacular economic growth. However, services in these two Asian giants have played a very different role. In India, the service sector contributes to more than 54 per cent of GDP while its GDP share in China is much smaller (below 41 per cent in 2004). To provide an explanation for the contrasting trajectories, this paper examines and compares service sector developments in these two Asian giants. It investigates the determinants of demand for services and sheds light on the outlook for service sector growth in the two countries.

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Paper provided by The University of Western Australia, Department of Economics in its series Economics Discussion / Working Papers with number 07-04.

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Length: 21 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:uwa:wpaper:07-04
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  1. Poonam Gupta & James P. F. Gordon, 2004. "Understanding India’s Services Revolution," IMF Working Papers 04/171, International Monetary Fund.
  2. Park, Se-Hark, 1989. "Linkages between industry and services and their implications for urban employment generation in developing countries," Journal of Development Economics, Elsevier, vol. 30(2), pages 359-379, April.
  3. World Bank, 2005. "World Development Indicators 2005," World Bank Publications, The World Bank, number 12425.
  4. World Bank, 2005. "World Development Indicators 2005," World Bank Publications, The World Bank, number 12426.
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