An Empirical Analysis on the Effect of Service Economy in Indian Economic Growth

Choongjae Cho ()
Additional contact information
Choongjae Cho: Lotte Economics Research Institute

East Asian Economic Review, 2008, vol. 12, issue 2, 183-220

Abstract: This study aims to analyze the effects of service economy in Indian economic growth. In consequence of empirical tests, the enlargement of the service sector in GDP has been a negative effect on the economic growth. However, the enlargement of service sector in trade and sub-service sector in total services has given an unclear effect on the economic growth. The results are induced by much labor movement into services other than manufacturing sectors from agriculture sectors as Baumol's hypothesis (1967). The results suggest that a stronger incentive policy for the manufacturing sector is needsed by the Indian government and the possibility of reduction in its significance exists because of the particularities of the Indian economy simultaneously.

Keywords: Indian Economy; Service Economy; Service; Economic Growth (search for similar items in EconPapers)
JEL-codes: L80 O10 O53 (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.11644/KIEP.JEAI.2008.12.2.192 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:eaerev:0133

Access Statistics for this article

East Asian Economic Review is currently edited by JE Lee

More articles in East Asian Economic Review from Korea Institute for International Economic Policy [30147] 3rd Floor Building C Sejong National Research Complex 370 Sicheong-daero Sejong-si, Korea. Contact information at EDIRC.
Bibliographic data for series maintained by JE Lee ().