Employment Implications of Trade-In Services
Given the rapid expansion of the services sector and its increasing contribution to the overall economic growth, an important question that comes up is whether trade-in services is expanding and if so whether it has a positive impact on employment. Banga and Goldar (2007) show that the contribution of service input to output and productivity growth in manufacturing (organised) in India has increased substantially in the 1990s. Further, many non-tradable services have become tradable now due to ICT (Joshi 2009). Lal (2007) based on evidence from five developing countries suggests the crucial role ICTs can play in the era of globalisation.