International Production Sharing and Export Growth in the Service Sector (Evidence from India)

Authors

  • Klimis Vogiatzoglou Hoa Sen University Faculty of Economics and Commerce 8, Nguyen Van Trang str., HCMC

Keywords:

Production Sharing, Offshoring, Multinationals, Exports, Services, India.

Abstract

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 India’s service industry and affected the country’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 India’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.

 

References

Baldwin, R. and Lopez-Gonzalez, J., “Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypothesesâ€, World Economy, 2014 (doi: 10.1111/twec.12189).

Ferrarini, B., Vertical Trade Maps. Asian Economic Journal, vol. 27, issue 2, pp. 105–-23, 2013.

Athukorala, P., Global production sharing and trade patterns in East Asia, Chapter 13, pp. 333-361, 2014, in: Kaur, I. and Singh, N. (Eds.) The Oxford Handbook of the Economics of the Pacific Rim, Oxfor University Press, Oxford.

Yang, L., “Production Sharing in East Asia: China’s Position, Trade Pattern and Technology upgradingâ€, Working Paper No. 07/2014, Berlin Working Papers on Money, Finance, Trade and Development, University of Applied Sciences, Berlin, Germany.

Chiu, D., “Advancing the Production Networks in East Asiaâ€, Modern Management Science & Engineering, vol. 1, issue 1, pp. 79-99, 2013.

Banga, R. and Kumar, D., “India’s Exports of Software Services: Role of External Demand and Productivityâ€, Paper presented at the Annual Conference of IASSI, Madras School of Economics, March 19-21, 2010.

Dossani, R. and Kenney, M., “Service Provision for the Global Economy: The Evolving Indian Experienceâ€, Review of Policy Research, vol. 26, pp. 77-104, 2009.

Chanda, R., “India and Services Outsourcing in Asiaâ€, Singapore Economic Review, vol. 53, issue 3, pp. 419-447, 2008.

Pereira, V. and Anderson, V., “A longitudinal examination of HRM in a human resources offshoring (HRO) organization operating from Indiaâ€, Journal of World Business, 2012, vol. 47, issue 2, pp.223-231, 2012.

Beretta, S. and Targetti Lenti, R., “India in the Outsourcing/Offshoring Process: A Western Perspectiveâ€, Economia Internazionale / International Economics, vol. 64, issue 3, pp. 269-296, 2011.

Anukoonwattaka, W. and Mikic, M., “India: A New Player in Asian Production Networks?†Studies in Trade and Investment No. 75, UNESCAP, United Nations Economic and Social Commission for Asia and the Pacific, Bangkok, Thailand, 2011.

Kuruvilla, S. and Ranganathan, A., “Economic Development Strategies and Macroand Micro-Level Human Resource Policies: The Case of India’s “Outsourcing†Industryâ€, Industrial and Labor Relations Review, vol. 63, article 3, 2008.

Meyer, T., “India’s specialisation in IT exports: Offshoring can’t defy gravityâ€, Research Notes, No 27, Deutsche Bank Research, Frankfurt am Main, 2007.

Helpman, E. and Krugman, P., Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition, and the International Economy, MIT Press, Cambridge, MA, 1985.

Helpman, E., “Imperfect Competition and International Trade: Evidence from Fourteen Industrial Countriesâ€, Journal of the Japanese and International Economies, vol. 1, pp. 62-81, 1987.

Anderson, J. and van Wincoop, E., “Gravity with Gravitas: A Solution to the Border Puzzleâ€, American Economic Review, vol. 93, pp. 170-192, 2003.

Feenstra, R., Advanced International Trade: Theory and Evidence, Princeton University Press, Princeton, NJ, 2004.

Tharakan, P., van Beveren, I., and van Ourti, T., “The Determinants of India’s Software Exports and Goods Exportsâ€, The Review of Economics and Statistics, vol. 87, pp. 776-780, 2005.

Brandicourt, V., Schwellnus, C., Worz, J., “Austria’s Potential for Trade in Servicesâ€, FIW Research Report No. 002, The Vienna Institute for International Economic Studies, Vienna, Austria, 2008.

Walsh, K., “Trade in Services: Does Gravity Hold?â€, Journal of World Trade, vol. 42, pp. 315–334, 2008.

Downloads

Published

2015-08-15

How to Cite

Vogiatzoglou, K. (2015). International Production Sharing and Export Growth in the Service Sector (Evidence from India). Asian Journal of Business and Management, 3(4). Retrieved from https://ajouronline.com/index.php/AJBM/article/view/2832

Issue

Section

Articles