Review of Professional Management- A Journal of New Delhi Institute of Management

Open Access Open Access  Restricted Access Subscription Access

Growth and Instability in India's Service Exports:A Policy Period Analysis


Affiliations
1 Research Scholar, Department of Commerce, University of Delhi, India
2 Professor, Department of Commerce, University of Delhi, India
 

After economic reforms of 1991, the service sector has become important for economic growth in India. International trade in services has accounted for 13.90 per cent of GDP as highest value during 2006. Trade in services also has been positively contributing towards trade balance during the last three decades. In 2017-18, service trade positively contributed $111.319 billion against total trade deficit of $160.036 billion. The growth of Indian economy is positively linked with the growth in trade in services. Therefore, trade in services has become an important attribute to economic growth. In this context, the present study has primarily attempted to measure growth and instability of the service export. It also analyzes the impact of reforms on growth as well as on instability of service export. The study period is sub divided into two parts pre and post reform period. The separate growth rates are measured and compared for pre and post reform period. The service trade data of different categories of services are included from 1980 to 2013 in accordance with BPM5. The samples of services include aggregate service export, commercial services, travel, transportation and other commercial services. The overall results indicate that there is significant difference in growth and instability for pre and post reform periods. Further, the trend in instability of service export is also found significant over the study period for pre and post reform period separately.

Keywords

Service, Economic Growth, Instability, Pre and Post Reform Period.
User
Notifications
Font Size

  • Bhattacharyya, B. and De, P. K. (2000). Change in India's Export Composition in the Post-Liberalisation Era, Foreign Trade Review, 35(1), 65-76.

  • Chakrabarty, Ranajit and Nath S. K. (2006). On Measurement of Export Instability: An Innovative Index, Calcutta Statistical Association Bulletin, 58 (3-4). 281-292. https://doi.org/10.1177/0008068320060308

  • Chand, P. (2014). A General Trend Analysis of India's Current Account Balance, Pragati: Journal of Indian Economy, 1(1). 104-123.

  • Chishti, S. (2002). Globalisation, Income Inequalities, Terms of Trade and Developing Countries, Foreign Trade Review, 37(1-2). 21-34.

  • Goyal, S.K., Pandey R.N.and Singh, J. P.. (2000). India's Agricultural Exports Growth and Instability, Foreign Trade Review, 35(1). 32-46.

  • Karmakar, S. (2005). India-ASEAN Cooperation in Services: An Overview Working paper No. 176.ICRIER , New Delhi, Website: www.icrier.org

  • Kaundal, R.K. and Sharama , M. (2006), Agricultural Exports of India in the New Economic Environment, Foreign Trade Review, 61(2): 3-34.

  • Kaushik, K. K., and Klein K. K.. (2008): Export growth, export instability, investment and economic growth in India: a time series analysis. The Journal of Developing Areas, 41(2). 155-170.

  • Love, James. (1992). Export instability and the domestic economy: Questions of causality. The Journal of Development Studies,28(4). 735-742.

  • Murthy, K.V.B and Chand, P. (2014). "Growth and Instability in India's Current Account Balance-Policy Period Analysis" paper presented at International Conference titled Shifting

  • Paradigms in Applied Economies and Management Course Correction by SMVDU, Katra on 1-2 august, 2014

  • Nandi, Sukumar and Kumar,S.(2005). Variability of Exports and Imports in Indian Perspective: An Empirical Study. Asia Pacific Business Review, 1(1), 68-75.

  • Ram, R. (2004). Trends in Developing Countries' Commodity Terms of Trade since 1970, Review of Radical Political Economics, 36(2), 241-253.

  • Tandon, A. (2003). "Growth Performance and Instability of India’s Agriculture Exports a Pre and Post Reform Analysis", The Indian Economic Journal, 36(3), 74-86.

  • Wadhwa, C.D (1998). "India's Export Performance and Policies: An Appraisal", Vikalpa, 23(1), 61-74.


Abstract Views: 360

PDF Views: 301




  • Growth and Instability in India's Service Exports:A Policy Period Analysis

Abstract Views: 360  |  PDF Views: 301

Authors

Anurag Maurya
Research Scholar, Department of Commerce, University of Delhi, India
Madan Lal
Professor, Department of Commerce, University of Delhi, India

Abstract


After economic reforms of 1991, the service sector has become important for economic growth in India. International trade in services has accounted for 13.90 per cent of GDP as highest value during 2006. Trade in services also has been positively contributing towards trade balance during the last three decades. In 2017-18, service trade positively contributed $111.319 billion against total trade deficit of $160.036 billion. The growth of Indian economy is positively linked with the growth in trade in services. Therefore, trade in services has become an important attribute to economic growth. In this context, the present study has primarily attempted to measure growth and instability of the service export. It also analyzes the impact of reforms on growth as well as on instability of service export. The study period is sub divided into two parts pre and post reform period. The separate growth rates are measured and compared for pre and post reform period. The service trade data of different categories of services are included from 1980 to 2013 in accordance with BPM5. The samples of services include aggregate service export, commercial services, travel, transportation and other commercial services. The overall results indicate that there is significant difference in growth and instability for pre and post reform periods. Further, the trend in instability of service export is also found significant over the study period for pre and post reform period separately.

Keywords


Service, Economic Growth, Instability, Pre and Post Reform Period.

References





DOI: https://doi.org/10.20968/rpm%2F2019%2Fv17%2Fi1%2F145654