Abstract
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.
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Notes
- 1.
For 1999–2000, NSS provided the absolute number of workers in the informal sector directly. The proportions have been calculated by considering the NSS estimate of population for the year 1999–2000. Since the NSS estimate of population is said to be grossly underestimated, these proportions are then applied to the absolute number of workers derived from the projected population of 1999–2000 on the basis of the decennial census figures. The adjusted set of absolute number of workers in the informal sector is then used for further analysis.
- 2.
Estimated long-run coefficients using the ARDL approach (1977–2005): ARDL (1,0,0,0)
Explanatory variables
Dep. var: ln(employment in organised wholesale, retail trade, hotel, etc.)
Dep. var: ln(employment in organised transport, storage and communication)
Dep. var: ln(employment in organised finance, business services, etc.)
Dep. var: ln(employment in organised community, social and personal services)
Ln(exports)
0.09
0.55
0.06
−0.03
(2.89)*
(0.30)
(0.29)
(−0.82)
Ln(imports)
002
0.61
−0.10
 (0.64)
(0.43)
(−0.83)
 ln(value added)
0.07
−3.08
0.27
0.63
(1.05)
(−0.35)
(0.42)
(3.69)*
Constant
−2.64
26.27
−2.30
−4.91
(−4.62)*
(0.36)
(−0.38)
(−2.42)*
- 3.
Regression results of value added of a particular activity on total non-agricultural value added and exports and imports corresponding to that activity
Explanatory variables
Dep. var: ln(value added in wholesale, retail trade, hotel, etc.)
Dep. Var: ln(value added in transport, storage and communication)
Dep. var: ln(value added in finance, business services, etc.)
Dep. var: ln(value added in community, social and personal services)
Ln(exports)
0.025
0.019
−0.093
−0.15
(0.62)
(0.35)
(−2.93)*
(−1.08)
Ln(imports)
0.027
−0.107
0.07
0.017
(0.86)
(−2.84)*
(4.26)*
(0.94)
Ln(non-ag value added)
0.0878
1.18
1.19
0.84
(11.26)*
(11.44)*
(10.69)*
(23.88)*
Constant
0.076
−3.34
−3.50
0.045
(0.010)
(−4.38)
(−3.13)
(1.32)
No. of observations
32
31
32
30
Adj. R 2
0.99
0.99
0.99
0.99
*  Represents significance at 5% level
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Mitra, A. (2013). Employment Implications of Trade-In Services. In: Insights into Inclusive Growth, Employment and Wellbeing in India. Springer, India. https://doi.org/10.1007/978-81-322-0656-9_6
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DOI: https://doi.org/10.1007/978-81-322-0656-9_6
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