The Link Between Manufacturing Growth and Accelerated Services Growth in India
NBER Working Paper No. 19923
The impact of trade liberalization on manufacturing growth has been widely studied in the literature. What has gone unappreciated is that accelerated manufacturing growth has also been accompanied by accelerated services growth. Using firm-level data from India, we find a positive spillover from manufacturing growth to gross value added, wages, employment, and worker productivity in services, especially large urban firms and in service sectors whose output is used as a manufacturing input.
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This paper was revised on April 14, 2015
Document Object Identifier (DOI): 10.3386/w19923
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