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The Link between Manufacturing Growth and Accelerated Services Growth in India

Rajeev Dehejia and Arvind Panagariya

Economic Development and Cultural Change, 2016, vol. 64, issue 2, 221 - 264

Abstract: The impact of trade liberalization on manufacturing growth has been widely studied in the literature. What has gone unappreciated is that accelerated manufacturing growth has also been accompanied by accelerated services growth. Using firm-level data from India, we find a positive spillover from manufacturing growth to gross value added, wages, employment, and worker productivity in services, especially in large urban firms and in service sectors whose output is used as a manufacturing input.

Date: 2016
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Working Paper: The Link Between Manufacturing Growth and Accelerated Services Growth in India (2014) Downloads
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