The Enigmatic Services Sector of India

The share of services in India’s GDP, at round 60%, is much higher than that in other emerging economies including China. Since the year 1991 Growth of services in the economy has surpassed that of agriculture and manufacturing, a feature that defies received wisdom on the growth pattern of economies. Received wisdom, grounded in the Kuznets paradigm, is that growth in the productivity of agriculture and agricultural incomes provides the manufacturing sector both low cost agricultural raw materials and a demand for its output. In time, the continued growth in incomes promotes the growth of the services sector both through a demand for consumer services and for services as growth promoting inputs into manufacturing and agriculture. India’s services sector, though, has grown alongside an agriculture sector that is none too productive, and a manufacturing sector that accounts for a relatively low 20% of the GDP. This paper provides an explanation, grounded in the country’s history and economic policies of the pre- liberalization era, for the growth of the services sector and argues that, contrary to popular opinion, it can lead the economy

International trade in services:The issue of market presence and right of establishment

The origins of the debate on presence and right of establishment are to be traced to the continuing discussion on what constitutes a service as distinct from a good. This chapter provides an analysis of the issues of 'market presence' and 'right of establishment' of foreign firms frequently alluded to but rarely elaborated on in literature on trade in services. It analyzes the concepts of 'presence' and 'right of establishment'. The chapter discusses the issues of 'presence' and 'establishment' in the context of international trade in general. It explores the issues in the context of liberalization of trade in services. The chapter focuses on the implications of the growth in information-technology industries and trans-border data flows for the issue of 'presence' and 'establishment'. 'Market presence' is a somewhat amorphous concept. It lies mid-way between pure trade and foreign direct investment. It is worth noting that goods and services are both produced by factors of production. © 1989 by The Atwater Institute. All rights reserved

Diaspora and development

NoJagdish Bhagwati's proposal for a 'brains tax' to be levied on the incomes of the diaspora from developing countries residing in the developed countries and the proceeds to be remitted to the countries of origin of the diaspora is well known. In recent years the voluntary contributions or remittances from the diaspora to their countries of origin have often been higher than the aid monies given to these countries. It is now increasingly recognised that the diaspora may have an active role to play in the development process of their countries of origin. They are not only a source of funds; they are also a rich source of skills and know-how. This paper analyses the potential of the diaspora as agents of change in their countries of origin and argues that the social rate of return to a unit of diaspora investments may be higher than that for a unit of foreign direct investment from non-diaspora sources

Competition policy and the WTO V.N. Balasubramanyam and C. Elliott

Includes bibliographical referencesSIGLEAvailable from British Library Document Supply Centre- DSC:3597. 379(5/02) / BLDSC - British Library Document Supply CentreGBUnited Kingdo

Foreign direct investment in India

'Paper presented at a workshop on Foreign Direct Investment in Developing Countries held at the Lake District, September 13th-14th, 2002'. Includes bibliographical referencesAvailable from British Library Document Supply Centre- DSC:3597. 379(1/03) / BLDSC - British Library Document Supply CentreSIGLEGBUnited Kingdo