The Service Sector in India's Development: Services
01 Jan 2012-
About: The article was published on 2012-01-01. It has received 7 citations till now. The article focuses on the topics: Primary sector of the economy & Tertiary sector of the economy.
Citations
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Journal Article•
TL;DR: Choi and Dickson as discussed by the authors emphasized that the hospitality industry is a highly guest service-oriented business where encounters between employees and guests determine the success of the business and pointed out that the challenges faced by the hospitality organizations today is to manage the changing employment relationship.
Abstract: Employee turnover is an endemic issue in hospitality industry, worldwide. Employee turnover intention acts as a proxy for actual employee turnover. One of the challenging issues faced by the hospitality organizations today is to manage the changing employment relationship. Being in customer service business, hospitality industry capitalizes heavily on its human resources in order to achieve its competitive advantage. Choi and Dickson (2009) emphasized that the hospitality industry is a highly guest service–oriented business where encounters between employees and guests determine the success of the business.
14 citations
Additional excerpts
...The following table provides a brief description of common taxonomy to understand the challenges of this sector as adapted from The Service Sector in India’s Development, (Nayyar, 2005)....
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...The Service Sector in India’s Development, Cambridge University Press, New Delhi, 2005....
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TL;DR: A short history of the Indian economy since 1968 is presented in this paper, where the authors analyse the economic policies and the politics behind this transformation and use that as a backdrop to take stock of the huge challenges that lie ahead.
Abstract: This paper is a short history of the Indian economy since 1968. India today is a changed country from what it was half a century ago, when Myrdal published his Asian Drama. The stranglehold of low growth has been broken, its population below the poverty line has fallen markedly, and India has joined the pantheon of major players globally. This paper analyses the economic policies and the politics behind this transformation; and uses that as a backdrop to take stock of the huge challenges that lie ahead.
10 citations
01 Jan 2014
9 citations
Cites background or methods from "The Service Sector in India's Devel..."
...Nayyar (2012) estimates this share to have been 16.8% in 1981, 20.9% in 1991, 27.2% in 2000 and 44.3% in 2009. 25. Rakshit (2007) uses national accounts statistics to estimate the household income elasticity of demand for services to have been 1....
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...Nayyar (2012) uses data on consumer expenditure generated by the National Sample Surveys to estimate household expenditure elasticity of demand for services, which turns out to be significantly greater than unity....
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...Nayyar (2012) estimates this share to have been 16.8% in 1981, 20.9% in 1991, 27.2% in 2000 and 44.3% in 2009....
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...Nayyar (2012) estimates this share to have been 16....
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...Several other studies – Gordon and Gupta (2004), Singh (2006), Eichengreen and Gupta (2010) and Nayyar (2012) – have noted that the growth of intermediate demand for services from agriculture and industry was quite small....
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Posted Content•
TL;DR: In this article, the authors study the phenomenon of service-led growth in India over the past two decades from the perspective of household expenditure and show that the bottom 75 percent of households in terms of monthly per capita expenditure (MPCE) have been the source of between 31 and 54 percent of total expenditure on services, the larger numbers referring to urban India.
Abstract: This paper studies the phenomenon of service-led growth in India over the past two decades from the perspective of household expenditure. We use consumption expenditure data from four recent “thick” rounds of the National Sample Survey in 1993-94, 2004-05, 2009-10 and 2011-12, and study aggregate services as well as 5 individual categories – education, healthcare, transportation, entertainment, and personal services – for both rural India. We begin by showing that expenditures of non-rich sections of the population are, and continue to remain, a significant source of the demand that has supported growth of the service sector over the past two decades. In particular, we show that the bottom 75 percent of households in terms of monthly per capita expenditure (MPCE) have been the source of between 31 and 54 percent of total expenditure on services, the larger numbers referring to urban India. Next, we show that expenditure on services, as a share of total expenditure, has increased across the expenditure distribution, even when we control for expenditure growth over time. For a poor country like India with widespread under-nutrition, this presents an unusual trend. We highlight the perverse nature of this trend in two ways. First, we estimate bivariate Lowess curves for the share of services in monthly expenditure against real MPCE, for rural and urban India separately, and show that it has been pivoting in a clockwise direction since 2004-05. Second, we confirm this finding by estimating quadratic Engel curves with an instrumental variable strategy. The clockwise pivoting of Lowess and Engel curves, especially true for urban India since 2004-05, mean that spending patterns of poor households – as captured by the share of monthly expenditure devoted to services – increasingly resemble those of the rich, even as income differentials persist. This suggests that poorer households are possibly getting constrained into spending more on services, even when they have inadequate consumption of food, due to larger structural changes beyond their control.
8 citations
Cites background or result from "The Service Sector in India's Devel..."
...Both because it departs from well-known patterns and because of its potential implications on poverty, inequality, and welfare, the growth of India’s service sector has attracted lot of scholarly attention in recent years (Singh, 2006; Rakshit, 2007; Eichengreen and Gupta, 2011; Nayyar, 2012)....
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...lot of scholarly attention in recent years (Singh, 2006; Rakshit, 2007; Eichengreen and Gupta, 2011; Nayyar, 2012)....
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...This finding about the response of spending on services to income (or total expenditure) is in accord with existing results (Nayyar, 2012)....
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...spending on services to income (or total expenditure) is in accord with existing results (Nayyar, 2012)....
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...Among the extant literature, Nayyar (2012) is closest to our paper....
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Posted Content•
TL;DR: In this article, the authors examined the productivity dynamics in service sector at detailed industry level and found that labor productivity in Indian service sector has been growing substantially over decades, and much of this productivity gain is accruing through acceleration in market services labor productivity.
Abstract: The rapid rise of service sector in India, as in its developing counterparts in Asia, follows the pattern of skipped industrialization and raises concern for sustaining economic growth in India. While the share of services in Indias GDP has risen over much of the post-independence period, the economic liberalization in the 1990s paved the way for the emergence of service sector as a key player in Indias growth story. The present paper examines the productivity dynamics in service sector at detailed industry levelthe India KLEMS (K = capital, L = labor, E = energy, M = materials, and S = services) panel dataset version 2015. Our results suggest that labor productivity in Indian service sector has been growing substantially over decades, and much of this productivity gain is accruing through acceleration in market services labor productivity. This observed productivity gain in market services, and in particular information and communications technology (ICT) intense services, might indicate the role of increasing ICT in contributing to labor productivity growth. The labor reallocation effect is positive for the period 19802011 and has increased in the 2000s, suggesting a structural transformation which is growth enhancing. The paper also examines the dynamics of total factor productivity in the service sector, measured using KLEMS growth accounting framework. The observed growth pattern in the service sector has not been uniform across all services in India. The performance of market-based ICT intensive sectors is impressive, especially in telecommunications and financial services. However, by and large, we find a dominance of capital deepening in accounting for growth.
8 citations
Cites background or methods from "The Service Sector in India's Devel..."
...2 Prasad and Sathish (2010) argue that lack of a proper all-India accredited system legitimizes foreign restrictions....
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...2 For example, Prasad and Sathish (2010) argue that lack of a proper all-India accredited system legitimizes foreign restrictions....
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...Nayyar Gaurav (2012), The Service Sector in India’s Development, Cambridge University Press, New York OECD (2001): OECD Productivity Manual, Paris....
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...We adopt the classification provided by Panagariya et al. (2014)1 as period 1 (1980-1993)—a period where India’s per capita GDP grew at an average annual rate of 2....
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References
More filters
Journal Article•
TL;DR: Choi and Dickson as discussed by the authors emphasized that the hospitality industry is a highly guest service-oriented business where encounters between employees and guests determine the success of the business and pointed out that the challenges faced by the hospitality organizations today is to manage the changing employment relationship.
Abstract: Employee turnover is an endemic issue in hospitality industry, worldwide. Employee turnover intention acts as a proxy for actual employee turnover. One of the challenging issues faced by the hospitality organizations today is to manage the changing employment relationship. Being in customer service business, hospitality industry capitalizes heavily on its human resources in order to achieve its competitive advantage. Choi and Dickson (2009) emphasized that the hospitality industry is a highly guest service–oriented business where encounters between employees and guests determine the success of the business.
14 citations
TL;DR: A short history of the Indian economy since 1968 is presented in this paper, where the authors analyse the economic policies and the politics behind this transformation and use that as a backdrop to take stock of the huge challenges that lie ahead.
Abstract: This paper is a short history of the Indian economy since 1968. India today is a changed country from what it was half a century ago, when Myrdal published his Asian Drama. The stranglehold of low growth has been broken, its population below the poverty line has fallen markedly, and India has joined the pantheon of major players globally. This paper analyses the economic policies and the politics behind this transformation; and uses that as a backdrop to take stock of the huge challenges that lie ahead.
10 citations
Posted Content•
TL;DR: In this article, the authors study the phenomenon of service-led growth in India over the past two decades from the perspective of household expenditure and show that the bottom 75 percent of households in terms of monthly per capita expenditure (MPCE) have been the source of between 31 and 54 percent of total expenditure on services, the larger numbers referring to urban India.
Abstract: This paper studies the phenomenon of service-led growth in India over the past two decades from the perspective of household expenditure. We use consumption expenditure data from four recent “thick” rounds of the National Sample Survey in 1993-94, 2004-05, 2009-10 and 2011-12, and study aggregate services as well as 5 individual categories – education, healthcare, transportation, entertainment, and personal services – for both rural India. We begin by showing that expenditures of non-rich sections of the population are, and continue to remain, a significant source of the demand that has supported growth of the service sector over the past two decades. In particular, we show that the bottom 75 percent of households in terms of monthly per capita expenditure (MPCE) have been the source of between 31 and 54 percent of total expenditure on services, the larger numbers referring to urban India. Next, we show that expenditure on services, as a share of total expenditure, has increased across the expenditure distribution, even when we control for expenditure growth over time. For a poor country like India with widespread under-nutrition, this presents an unusual trend. We highlight the perverse nature of this trend in two ways. First, we estimate bivariate Lowess curves for the share of services in monthly expenditure against real MPCE, for rural and urban India separately, and show that it has been pivoting in a clockwise direction since 2004-05. Second, we confirm this finding by estimating quadratic Engel curves with an instrumental variable strategy. The clockwise pivoting of Lowess and Engel curves, especially true for urban India since 2004-05, mean that spending patterns of poor households – as captured by the share of monthly expenditure devoted to services – increasingly resemble those of the rich, even as income differentials persist. This suggests that poorer households are possibly getting constrained into spending more on services, even when they have inadequate consumption of food, due to larger structural changes beyond their control.
8 citations
Posted Content•
TL;DR: In this article, the authors examined the productivity dynamics in service sector at detailed industry level and found that labor productivity in Indian service sector has been growing substantially over decades, and much of this productivity gain is accruing through acceleration in market services labor productivity.
Abstract: The rapid rise of service sector in India, as in its developing counterparts in Asia, follows the pattern of skipped industrialization and raises concern for sustaining economic growth in India. While the share of services in Indias GDP has risen over much of the post-independence period, the economic liberalization in the 1990s paved the way for the emergence of service sector as a key player in Indias growth story. The present paper examines the productivity dynamics in service sector at detailed industry levelthe India KLEMS (K = capital, L = labor, E = energy, M = materials, and S = services) panel dataset version 2015. Our results suggest that labor productivity in Indian service sector has been growing substantially over decades, and much of this productivity gain is accruing through acceleration in market services labor productivity. This observed productivity gain in market services, and in particular information and communications technology (ICT) intense services, might indicate the role of increasing ICT in contributing to labor productivity growth. The labor reallocation effect is positive for the period 19802011 and has increased in the 2000s, suggesting a structural transformation which is growth enhancing. The paper also examines the dynamics of total factor productivity in the service sector, measured using KLEMS growth accounting framework. The observed growth pattern in the service sector has not been uniform across all services in India. The performance of market-based ICT intensive sectors is impressive, especially in telecommunications and financial services. However, by and large, we find a dominance of capital deepening in accounting for growth.
8 citations