International Production Sharing and Export Growth in the Service Sector (Evidence from India)
Keywords:Production Sharing, Offshoring, Multinationals, Exports, Services, India.
International production sharing activities have increased substantially in the service sector. India as a host-country has attracted a large amount of those activities and by now holds a significant position in the global service supply chain. This development may have shaped significantly Indiaâ€™s service industry and affected the countryâ€™s trade patterns. Therefore, the paper examines the inflow of production sharing activities in the service sector in India, and assesses econometrically the role and quantitative effect on Indiaâ€™s service exports. Our empirical findings indicate that international production sharing had subsequently a decisive impact on the growth of service exports from India to her trade partners.
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