Trade Liberalization in Manufacturing and Accelerated Growth in Services in India

Rajeev Dehejia, Arvind Panagariya

Research output: Contribution to specialist publicationArticle

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.
Original languageEnglish (US)
Pages221-264
Volume64
No2
Specialist publicationEconomic Development and Cultural Change
StatePublished - 2016

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