NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Human capital and the Indian software industry

Ashish Arora, Surendra K. Bagde

NBER Working Paper No. 16167
Issued in July 2010
NBER Program(s):   PR

Though previous studies have noted the role of skilled labor in the growth of the Indian software industry, they have not empirically investigated its importance. In this study we study the effect of the supply of engineers, measured by engineering baccalaureate capacity, on the regional growth of the software exports between 1990 and 2003. We find significant effect of engineering baccalaureate capacity on the growth of software exports even after controlling for other relevant factors. This conclusion is especially interesting because much of this capacity is due to private, rather than publicly supported colleges, and testifies to the private willingness to invest in human capital even in poor countries.

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Document Object Identifier (DOI): 10.3386/w16167

―Human capital and the Indian software industry‖ (with Surendra Bagde) in Krishnendu Ghoshdastidar (ed). Essays in Honour of Professor Anjan Mukhejee‖, Oxford University Press. Forthcoming. (Revised version of NBER working paper, 16167.)

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