The Link Between Manufacturing Growth and Accelerated Services Growth in India

Rajeev Dehejia and Arvind Panagariya

No 19923, NBER Working Papers from National Bureau of Economic Research, Inc

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 large urban firms and in service sectors whose output is used as a manufacturing input.

JEL-codes: O14 P21 (search for similar items in EconPapers)
Date: 2014-02
New Economics Papers: this item is included in nep-int
Note: ITI
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Citations: View citations in EconPapers (4)

Published as Economic Development and Cultural Change, Volume 64, Numbers 2 (January 2016), pp. 221-264.

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Journal Article: The Link between Manufacturing Growth and Accelerated Services Growth in India (2016)
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