Dehejia, Rajeev H.
The Link Between Manufacturing Growth and Accelerated Services Growth in India /
Rajeev H. Dehejia, Arvind Panagariya.
- Cambridge, Mass. National Bureau of Economic Research 2014.
- 1 online resource: illustrations (black and white);
- NBER working paper series no. w19923 .
- Working Paper Series (National Bureau of Economic Research) no. w19923. .
February 2014.
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.
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