Revealed comparative advantages for India in services trade

Pailwar, Veena Keshav; Shah, Nirav R.

doi:10.1504/ijtgm.2009.025384

Cited by 6 publications

(5 citation statements)

References 12 publications

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“…This largely concurs with the findings ofBurange et al (2010), who showed that India lost its global comparative advantage over the rest of the world in travel in the aftermath of the 1997 East Asian Financial Crisis.21 Burange et al (2010) andPailwar and Shah (2009) also identify computer and information services as India's industry with the strongest CA over the rest of the world.…”

supporting

confidence: 83%

“…The main component responsible for this pattern is identified as trades in computer and information services. Pailwar and Shah (2009) confirm these findings using the same data and sample period but employing a more sophisticated methodology. In addition, Parida (2012, 2013) show that services exports have made a significant contribution to India's economic growth over the period 1996-2010.…”

Section: Introductionsupporting

confidence: 66%

“…First, it is asymmetric and, therefore, values on one side of unity are not comparable with those on the other side. 16 To address this issue of asymmetry, Dalum, Laursen, and Vilumsen (1998) suggest transforming the RCA index into:…”

Section: Methodsmentioning

confidence: 99%

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Comparative advantages in U.S. bilateral services trade with China and India

Nath

Liu

Tochkov

2015

Journal of Asian Economics

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Using bilateral trade data for 16 service categories, this paper examines the patterns, evolution, and determinants of comparative advantage (CA) in U.S. services trade with China and India from 1992 to 2010. The results indicate that the U.S. has a CA in most services, except in more traditional ones, such as travel and transportation. However, India, and more recently China, gained a CA in modern services, such as computer and information services during the period considered in this paper. An examination of the distributional dynamics indicates that the likelihood of U.S. gaining CA over an initial position of comparative disadvantage (CDA) in its trade of a particular service with India is higher than the probability of losing its initial dominance. In contrast, the U.S. CA or CDA vis-à-vis China exhibits high levels of persistence over time. The regression results suggest that relative abundance of sector-specific labor, human capital, and FDI inflows have been significant sources of CA for the U.S. over both China and India.

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supporting

confidence: 83%

Section: Introductionsupporting

confidence: 66%

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Comparative advantages in U.S. bilateral services trade with China and India

Nath

Liu

Tochkov

2015

Journal of Asian Economics

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“…Among commercial services, India has a comparative advantage in computer and information services. Using more sophisticated econometric methods covering the same period, Pailwar and Shah (2009) found similar results. In addition, Dash and Parida (2013) argued that India's overall growth was attributed to global service exports, considering the period between 1996 and 2010.…”

Section: Introductionmentioning

confidence: 60%

India–Republic of Korea CEPA: Assessment and Future Path

Banik

Kim

2022

Economies

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India and the Republic of Korea (ROK) are on the path to forging deeper economic cooperation. Both countries signed a Comprehensive Economic Partnership in 2009, which was in effect in 2010, and agreed to reduce and/or eliminate tariffs on goods. In this paper, we examine the sectors—both merchandise goods and services—where India and the ROK have a comparative advantage. We analyze the tariffs and non-tariff measures in the context of India–ROK trade and the gains from trade that can result from a reduction in tariff barriers. Our results suggest that India has a comparative advantage in services and the ROK in merchandise goods. Therefore, future negotiations must focus on India offering market access to the ROK’s merchandise goods and the ROK providing access to India’s services.

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“…These links reiterate the contribution of labour to the growth of the service industry in India. The story of successful exports of services hinges on the fact that India has a comparative advantage over the rest of the world (Burange et al, 2010, Nath & Goswami, 2018; Pailwar & Shah, 2009). The advantage arises from the availability of cheap yet skilled English-speaking professionals and engineers.…”

Section: Resultsmentioning

confidence: 99%

Productivity and Exports: An Industry-Level Analysis of the Service Sector in India

Goswami

Narayanan

2023

Millennial Asia

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The large share of the service sector and its status as a net exporter raise concerns about the sustainability of such growth for a developing economy like India. Given the context, the present article attempts to examine the productivity dynamics of the service sector in India at the industry level. We use the India KLEMS dataset to identify the trends in total factor productivity (TFP) growth and the growth in factor inputs. By uniquely combining the India KLEMS dataset with the trade values in the Extended Balance of Payments Services classification, we examine the dynamics between TFP growth and exports of services using panel vector autoregression technique. The trends in factor inputs show that there is capital deepening within services and the growth in employment remained comparatively lower. The results indicate a feedback effect of exports and productivity growth within the service sector. Additionally, we note that the use of more skilled labour that is better equipped to handle new technology also contributes to growth in the service sector, both in terms of productivity and exports.

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Revealed comparative advantages for India in services trade

Cited by 6 publications

References 12 publications

Comparative advantages in U.S. bilateral services trade with China and India

Comparative advantages in U.S. bilateral services trade with China and India

India–Republic of Korea CEPA: Assessment and Future Path

Productivity and Exports: An Industry-Level Analysis of the Service Sector in India

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