1. India’s Service Exports to OECD Countries: Evidence on Crowding Out.
- Author
-
Das, Sampriti
- Subjects
BILATERAL trade ,EMERGING markets ,COUNTRIES ,REPAIR & maintenance services ,EXPORTERS ,CAPITALISM ,EXPORTS ,TRANSFER pricing - Abstract
At the root of the second wake of export pessimism is the argument that exportled growth (ELG) models suffer from a fallacy of composition. Under constrained global demand, all exporting nations cannot simultaneously pursue ELGs, and the ensuing battle for markets would eventually cause more competitive exporters to drive out or displace less competitive ones. Considering how the Indian economy has witnessed a deceleration in her export of services since the mid-2000s, this paper enquires whether similar export-displacements could have lent to this status quo. Using bilateral service trade data for the years 2005-2015, the paper tests the displacement or crowding out of India’s export of services to advanced OECD nations by exports from other developing and emerging market economies. Our results show the remarkable presence of complementarity between service exports from India and that from other exporting powerhouses like China, Singapore and Vietnam, though the country appears to have been losing markets for her prime services to certain emerging exporters. [ABSTRACT FROM AUTHOR]
- Published
- 2024