Globalisation and Service Sector
Globalisation and Service Sector
: Input-Output Analysis
Rita Bhowmik
Jadavpur University, Kolkata- 700032.
Email : rita_bhowmik2003@ yahoo.co.in
A B S R A C T
Globalization implies a comprehensive and self-evident process working towards establishing a worldwide aggregative whole of an economic structure into which all economies of the world must integrate today or tomorrow. This includes services which in most economies are the single largest contributor to economic growth and employment. It is widely recognized and deliberated upon that the global importance of service sector in terms of its share in Gross Output has been growing progressively in the economies of the world. The objective of this paper is to make an assessment of the global importance of the service sector which accounts the value added originating from service sector in total value added produced, needed directly and indirectly to produce gross output in the economy. For this purpose, an index of vertical integration has been constructed which provides a dimension-free measure of the multiplier of each industry on the value-added originating from the service sector to total value added. In this regard, the already well developed input-output technique has been used. The computations and results of the assessment of the global importance of service sector by input-output matrix method have been applied for India in 1993-94. Empirical part of this study shows that Other services, Trade, Chemicals, Construction, Minerals, Electricity, Rail Transport Services, played as a role of key sector in terms of importance of service sector as input for their production in the Indian economy. They provided strong stimulus to the economy by inducing greater value addition to service sector. In general, services industries appear to be the highly growth-inducing sector in so far as they help higher value addition to other industries in the economy.
Key words: Service Sector,
: Input-Output Analysis
Rita Bhowmik
Jadavpur University, Kolkata- 700032.
Email : rita_bhowmik2003@ yahoo.co.in
A B S R A C T
Globalization implies a comprehensive and self-evident process working towards establishing a worldwide aggregative whole of an economic structure into which all economies of the world must integrate today or tomorrow. This includes services which in most economies are the single largest contributor to economic growth and employment. It is widely recognized and deliberated upon that the global importance of service sector in terms of its share in Gross Output has been growing progressively in the economies of the world. The objective of this paper is to make an assessment of the global importance of the service sector which accounts the value added originating from service sector in total value added produced, needed directly and indirectly to produce gross output in the economy. For this purpose, an index of vertical integration has been constructed which provides a dimension-free measure of the multiplier of each industry on the value-added originating from the service sector to total value added. In this regard, the already well developed input-output technique has been used. The computations and results of the assessment of the global importance of service sector by input-output matrix method have been applied for India in 1993-94. Empirical part of this study shows that Other services, Trade, Chemicals, Construction, Minerals, Electricity, Rail Transport Services, played as a role of key sector in terms of importance of service sector as input for their production in the Indian economy. They provided strong stimulus to the economy by inducing greater value addition to service sector. In general, services industries appear to be the highly growth-inducing sector in so far as they help higher value addition to other industries in the economy.
Key words: Service Sector,
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