Expansion of Services Output Share: Traditional Factors or Policy Changes?

Roy Amrita ()
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Roy Amrita: Centre for Economic Studies and Planning, School of Social Sciences, Jawaharlal Nehru University, New Delhi, India

Global Economy Journal, 2015, vol. 15, issue 3, 409-430

Abstract: This paper seeks to find whether the shift in the production structure away from agriculture to services is only the result of the change in income status or the changing economic relations among countries has any important role to play here. It tries to find out the factors responsible for the huge expansion of the services output in recent times (1971–2009) considering three different samples (a) a group of developed and developing countries, (b) a group of developing countries, in particular and also (c) the case of India. The paper finds that along with the variables representing changing income status and technological development, policy changes related to globalization and liberalisation are also important but these policy variables can not explain the shift in the output share of the service sector in the 1990s.

Keywords: structural change; economic development; service industries (search for similar items in EconPapers)
JEL-codes: L16 O10 O14 (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1515/gej-2014-0034

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