Sector In Gross Domestic Product Research Articles

Services sector in India: trends, issues, and the way forward

This paper provides an overview of the Indian services sector. It shows that services is the fastest growing sector in India, contributing significantly to gross domestic product (GDP), GDP growth, employment, trade, and investment. India is a major proponent of liberalizing services both in the World Trade Organization and in its bilateral trade agreements. However, there are some concerns. In the recent past, economic growth and growth of the services sector has slowed down. Growth in employment in services has not been commensurate with the share of the sector in GDP. Although India is a major exporter of services, its export competitiveness concentrates in few sectors and a few markets. The paper identifies a number of barriers faced by the services sectors and suggests policy measures which, if implemented, will lead to inclusive growth, increased productivity, generate quality employment, increase trade and investment, and enhance India’s global competitiveness in services.

Economic diversification in Saudi Arabia: Myth or reality?

Economic diversification is important for building sustainable economic growth. Thus, an economy that is highly dependent on income from a natural resource is in danger of instability or even collapse if the price of such commodity decreases in the global market. Additionally, economic diversification contributes positively to creating jobs, fighting corruption, and improving the institutional quality of countries. The Saudi government has issued 10 development plans since 1970, each covering five years, and economic diversification is a main objective of all these plans. This paper examines the government׳s efforts to diversify the economy using four variables: oil share of gross domestic product (GDP), share of private sector in GDP, oil exports as a percentage of the country׳s exports, and oil revenues as a percentage of total revenues. The current analysis covers nine development plans from 1970 through 2013. The analysis concludes that, after more than 40 years of development plans aiming to diversify the Saudi economy, oil is still the main engine driving the economy. The Saudi government needs to fully consider economic diversification as a tool for better governance.

Leveraging Service Sector Growth in the Philippines

The Philippines is often referred to as a country from which export of services rather than manufactured goods is the principal engine for economic growth, as the share of the service sector in gross domestic product has exceeded that of the industry sector since the mid-1980s. Three major opportunities for leveraging service sector growth stands out. One is expanding the scale and scope of the export and domestic markets for information technology-business process outsourcing and other modern services in urban areas. Second is expanding tourism to foster economic development across social groups and regions including poor and remote rural areas. Third is enhancing the domestic prospects for Filipino technical, managerial, and entrepreneurial talent so they will work in the Philippines rather than overseas. To take advantage of those opportunities, there is a need for concerted efforts to improve infrastructure; logistics; broadband connections; the power supply; and education, healthcare, financial, legal, and public administration services and more generally the overall business environment for foreign investors and local entrepreneurs.

Irrigation’s Impact on Economic Growth in Alberta, Canada

Irrigation development in semi-arid regions provides benefits for producers as well as many others who reside in the region. Although a common perception exists that irrigation benefits only irrigation producers, a study carried out by Paterson Earth and Water Consulting Ltd showed that irrigation positively impacts many more sectors of the Alberta economy than just irrigation producers. Compared to dry land (rain fed) agriculture, irrigation creates increased employment and economic activity through the purchase of additional farm inputs as well as processing of agricultural products. Multi-use water storage reservoirs, which support irrigation agriculture, provide societal benefits through recreation, hydropower generation, and water supply for habitat development, communities and industries. This study estimated that Alberta’s irrigation industry, which represents less than 5% of the cultivated land base, generates about $3.6 billion to the provincial gross domestic product (GDP), accounting for about 20% of the total agri-food sector GDP. It is also responsible for generating about $2.4 billion in income and creating about 56,000 jobs. Many of these jobs and incomes are generated in the rural regions of the province, and serves as an important part of the rural development initiatives in Alberta. Almost 90% of the GDP generated by the irrigation sector accrued to the region and the province, and only 10% accrued to irrigation producers.

ECONOMIC STRUCTURE ANALYSIS, LEADING SECTORS AND REGIONAL DEVELOPMENT IN MALANG YEAR 2008-2012.

The purpose of this study was to determine the structure of the economy, the dominant sector and regional development strategies in Malang Year 2008-2012.From the analysis it can be concluded that by using a tool known for Economic Structural Analysis of 9 existing economic sector in Gross Domestic Product during the years 2008 to 2012 the sector that contributes most to the Gross Domestic Product (GDP) at constant prices Malang is the sector tertiary contributing 64.82 %. From the analysis of the leading sectors, Malang has a leading sectors are trade, hotels, and restaurants with LQ value of 1.29 and a differential value shift by shift proportional 195,272.27 and 135,101.68. From the analysis of gravity, Malang has the greatest interaction with the Malang region. For the development of Malang area is quite well characterized by an increase in Gross Domestic Product (GDP) from year to year but still needs to be developed further other economic sectors that still have the potential to compete with other regions in East Java.

A Turning Point for the Service Sector in Thailand

Although Thailand’s service sector accounts for almost half of the national income and has a major stake in national employment, its contribution to the growth of the gross domestic product (GDP) fluctuates. Moreover, the share of the service sector in GDP is decreasing while many developed countries maintain a positive association between the shares of the sector in output and per capita income. This paper investigates this relationship by examining the gross provincial product of 76 provinces to test the hypothesis that the service sector is a growth engine in the Thai economy. Using the fixed-effects model, the estimates confirm two waves of growth. Total factor productivity and revealed comparative advantages are discussed to determine significant service activities. Wholesale and retail trade, tourism and travel-related activities, transportation, and construction all play major roles in contributing to Thailand’s economic growth. The government should continue to promote these services with unambiguous policies suitable for each region and province. Educational services also require more attention from pertinent agencies.

The Service Sector in India

The service sector is the largest and fastest growing sector in India and has the highest labor productivity, but employment has not kept pace with the share of the sector in gross domestic product and has not produced the number or quality of jobs needed. There is no policy leading to inclusive growth, and multiple, uncoordinated governing bodies adversely affect the growth of the sector. Many regulations are outdated, and there are restrictions and barriers on foreign direct investment. While India is among the top 10 World Trade Organization members in service exports and imports, the growth and export of services is less than that of the People’s Republic of China, and exports are competitive in only a few services and are concentrated in a few markets. Most of the poor in India do not have access to basic services such as healthcare and education, and infrastructure is weak so the cost of service delivery is high. Although India wants to be a knowledge hub, there is no uniformity in the quality and standards of education, and formal education does not guarantee employability. Policy measures are suggested for inclusive growth that will also enhance India’s global competitiveness in services.

Measuring the Contribution of the Unincorporated Sector in the Canadian Economy, 1997 to 2002

This paper sheds light on the contribution of unincorporated enterprises to the Canadian economy in terms of gross domestic product (GDP) from 1997 to 2002. The study separates the aggregate business GDP, including its components, into the unincorporated and incorporated sectors. After describing the key legal and organizational differences between the unincorporated and incorporated sectors, including tax regime, limited liability, and number of entities, employment and capital intensity, it looks at the contribution of the two sectors across various industries. It provides estimates for 25 S-level industries and W-level detail for some of the more important industries of the unincorporated sector. In deriving the estimates, the study used the same data sources as those used in Statistics Canada’s Input-Output Accounts. Results of the study suggest that the unincorporated sector contributed $82.2 billion in 2002 representing 10.1% of total business sector GDP, a slight decrease from 11.3% in 1997.

Economic impact of electricity supply interruptions on the industrial sector of Bangladesh

The study, conducted in 2001-2003, presented in this paper examines the economic impact of the quality of electricity delivered to the industrial installations in Bangladesh. The assessment consists of analyzing power supply interruptions and their economic impact on a sample of industrial consumers, estimating self-generation costs and environmental impacts. It was found that the industrial sector losses attributable to unplanned electric power interruptions average 0.83 US$/kWh while they are only 0.34 US$/kWh for planned outages. Further, it was found that the voltage fluctuations can cause major problems in certain industries, such as tobacco manufacturing and chemicals. It is estimated that 94% of the total energy not served resulting from interruptions is due to unplanned outages and only 6% can be attributable to planned outages. Approximately 13.6% of the industrial sector demand cannot be met by the utilities due to these interruptions. This translates into 11.54% of the industrial sector GDP or 1.72% of Bangladesh's gross domestic product (GDP) in 2000-01. It is concluded that the impact of these outages on the economy is significant. If the frequency and duration of outages can be reduced, a higher tariff is likely to be acceptable to important industries such as tobacco, wearing apparel, and leather products. Further, improving awareness of energy conservation and implementation of an aggressive programme towards it in the industrial sector will help to ease these adverse impacts on the economy to a large extent.

Assessment of Sectoral Growth of Indian Economy Using Growth Models

Economic reforms have affected all sectors of Indian economy. Before reforms, the pace of economic growth was slow and the growth rate of gross domestic product (GDP) was imperceptibly above the population growth rate. After reforms, Indian economy has transformed relatively from stagnation to a dynamic stage due to growth in primary, secondary, and tertiary or service sectors. However, pattern of growth in agriculture, industry, and service sectors along with developments in the reforms and liberalization process shows that growth in agriculture sector has not increased substantially though other sectors, particularly service sector demonstrate the boost. Therefore, the objective of the paper is to examine the nature of growth and direction of different sectors namely agriculture, industry, and service sectors in India using growth models. Results indicate that contribution of agriculture sector in GDP is declining whereas the share of service sector is increasing. Further, analysis shows that contribution of industrial sector (in terms of share) in GDP seems approaching towards stagnation.

Forest and economic impacts of alternative management strategies on Crown land in New Brunswick

This study evaluated the long-run economic impacts of four alternative forest management strategies on New Brunswick’s Crown land forests: two volume-based strategies focused on business as usual (BAU) and intensive (INT) timber volume production and two value-based strategies focused on forest manufacturing sector contribution to gross domestic product (GDP) and government surplus (GOV). These were defined within an extended wood supply model that incorporated both economic indicators (logging sector profit, government surplus, forest manufacturing sector shipments, and forest manufacturing sector GDP) and timber supply indicators (harvest levels, operable growing stock, and products). Results showed that a number of indicator trade-offs emerge under each strategy. For instance, the GOV strategy produced the highest present value government surplus value (at $1.2 billion, exceeding INT, BAU, and GDP strategies by $352 million, $302 million, and $169 million, respectively) and logging sector profit (at $2.4 billion, exceeding BAU, INT, and GDP strategies by $4 million, $11 million, and $8 million, respectively) over an 80 year planning horizon. However, this strategy also produced the lowest forest manufacturing sector contribution to GDP (at $12.8 billion, below the GDP, INT, and BAU strategies by $4.3 billion, $1.6 billion, and $1.4 billion, respectively) and the lowest annual softwood volume harvest, operable growing stock, and silvicultural investment of all strategies. Thus, although these findings emphasize that value-based strategies can produce some favourable economic outcomes, a number of trade-offs emerge that need to be further investigated before such strategies can be supported.

Role of Services Sector in Indian Economy: An Input-Output Approach

Services sector plays an important role in the Indian economy. It is observed that the share of services sector in Gross Domestic Product (GDP) of the Indian economy shows an increasing trend. It was 28.49 per cent in the year 1950-51 then it rose to 31.88 per cent in the year 1970-71 and subsequently 42.80 per cent in the year 1996-97. The objective of this paper is to study the role of services sector by identifying the services intensive industries and its relation with the rest of the economy. To build a relation of the services sector with the rest of the economy, the economy is divided into two separate blocks of industries - services and non services. An index is constructed to show the expansionary potential of the services sector on non-services sector. Empirical work is carried out with the input-output data of India for the year 1991-92.