Growth Of Service Sector Research Articles

Employee Engagement in the selected Manufacturing and Information Technology companies in Bengaluru

India has become gradually as one of the fastest growing economies in the world over the last few years. The Government recognises that broad based strong growth in industrial and services sector is required in order to sustain its current economic progress. But, in fact, there is a huge amount of differences between manufacturing sector and service sector in terms of productivity, quality, efficiency and so on. Most of such differences are contributed by numerous factors like psychology of the employees, leadership style, compensation and level of engagement show caused by the employees. This article has made an attempt to identify and analyze level of employee engagement in manufacturing and information technology companies in Bengaluru, India. The study has been empirical in nature and adopts survey method of data collection. Structured questionnaire method is employed to collect data from employees working in manufacturing and information technology companies and sample size is determined using Krejice and Morgan equation. This study reveals level of employee engagement in manufacturing and information technology companies and analyzes the reasons of such level of employee engagement.

ЭФФЕКТИВНОСТЬ ИСПОЛЬЗОВAНИЯ ЧЕЛОВЕЧЕСКОГО КAПИТAЛA В СЕЛЬСКОМ ХОЗЯЙСТВЕ НA СОВРЕМЕННОМ ЭТAПЕ РAЗВИТИЯ

The article is devoted to the problem of accelerating the industrialization processes of a number of regions of Kazakhstan in order to develop an export-oriented economy. A review of foreign literature on the features of industrialization of the economy is presented. The results of the analysis of indicators of the share of gross regional product of the regions of Kazakhstan in the overall indicator for the country are given. Advancing in comparison with a national average indicator of growth rate of a gross regional product per capita in the Akmola, East Kazakhstan, Jambyl, Karaganda, Almaty, North Kazakhstan regions, Almaty, Astana. Indicators of structure of a gross regional product are calculated in a section of goods and services in regions of RK for the analyzed period, increase in a share of services in regions of RK is revealed: Kzylorda from 47.0 to 55.19%; Aktobe from 48.1 to 54.02%, Jambyl from 63.1 to 65.58%, SKR from 58.3 to 60.85%, Astana from 84.1 to 85.29%, Almaty from 91.1 to 92.85%. The revealed trends characterize growth of services sector and decrease in a share of production of goods. The analysisis made the maintenance of a gross regional product of SKR in 2018 with distribution of sizes to the Turkestan region and Shymkent. It is established that a primary share of investments, the industrial output and construction are placed in Shymkent. The conclusion is drawn on need of development of industrialization of regions of SKR; offers are given on creation new processing production into agrarian and industrial complex, to development of export-oriented productions.

Economic Impact of FDI on Indian Aviation Sector

Success of any economy depends on the performance of service sector. Aviation is one of the fast growing service sectors which may pave way for economic growth and development for the developing countries. India is one among the world's fast growing domestic aviation market. It gains the 9th rank in the global aviation market and it is projected to be the 3rd largest by 2020 and largest by 2030. The current study focuses on the economic impact of FDI on Indian Aviation Sector. Chapter one provides basic idea about the Indian Aviation Sector. Chapter two enlists the review of literature. Chapter three envisages the need for the foreign investment in Indian Aviation. Chapter four narrates the role of FDI in aviation. Chapter five elucidates the SWOT analysis of FDI on Indian Aviation. The final chapter concludes the current status of Aviation sector along with the discussion for future studies.

The Impact of Tourism Industry on Gross Domestic Product and Balance of Payments in India

Tourism sector is one of the fast growing service sectors in the World. It acts as a powerful mechanism for economic growth. India is a matchless and perfect destination for both domestic and foreign visitors. India’s wide variety of flora, fauna, tourist destinations, health and wellness centres, eco-tourism spots, adventure activities, culture, heritage, educational institution etc. attract both domestic as well as foreign tourists. The boost in the tourist arrivals have resulted in the swift growth of tourism sector in India. The growth of tourism sector has resulted in employment generation, foreign exchange earnings, development of infrastructure facilities, capital investment, socio-economic growth, increasing in the contribution to GDP and so on.

Inter Sectoral Linkages and Growth of Information Segments in the Indian Economy and its Selected Regional Economies

Growth of services sector is led by information technology enabled services leading to increases in national and regional GDP, employment and exports. States adopting central policies on information technology have benefitted by software exports. Besides, every job created here re-creates four more jobs. This is the study on inter-sectoral linkage of information sectors to other sectors of the economy by using 2003-2004 and 2007-2008 national tables and constructed regional tables. Results show at national level, non-information sectors depend more on their demand links as compared with information sectors and vice versa in the case of supply links. At state level, information sectors depend more on their demand as well as supply links as compared with the non-information sectors. Results also show a number of non-information sectors and a few information sectors to have over investment in inventories.

The Impacts of Sector Growth and Monetary Policy on Income Inequality in Developing Countries

Using a cross-country panel of 92 developing countries over the period 1990-2014, this paper examines the impacts of sector growth on income inequality. Most low-income people in developing countries are involved in agriculture and related industries, and directly utilize natural resources. The question is what policy instruments are efficient to reduce income inequality. The main objectives of monetary policy aim to maintain price stability, improve sector growth, and create employment. But, empirical evidence indicates that the impact of these policies to reduce income inequality have not been efficient, and monetary policy always dominates fiscal policy for rising or falling income inequality during a certain period, which in turn influences the inflation and real output in the countries. While inflation is a major variable to affect the purchasing power of low-income people, we examine the existence of linear and nonlinear linkages between inflation as a proxy of monetary policy and income inequality in line with testing validity of the Kuznets hypothesis to assess the monetary policy efficacy. The statistically significant finding shows that first agricultural growth and then industrial growth have a dominate impact in reducing income inequality in our sample. But, the service sector growth has positive effects. The results confirm the existence of Kuznets inverted 'U' hypothesis for industry growth and Kuznets 'U' hypothesis for service sector growth. Using an error correction model for analyzing the short- and long-run relationship between income inequalities, sector growth, and inflation, we find that sector growth and inflation affect income inequality in the long-run.

Financial development, industrialization, the role of institutions and government: a comparative analysis between India and China

ABSTRACTThis research is the first comparative attempt incorporating the role of economic, demographic, sectoral contribution, government and trade in explaining financial development for India and China. Using time-series estimations, we establish that institutional quality and government size impede financial development, whereas urbanization, industrialization and service sector growth help in financial development for both countries. Trade openness also enhances Indian financial development but hinders Chinese financial development. We suggest that the policy advisers should not underestimate the role of urbanization, industrialization and service sector growth in implementing financial development. Finally, we find that the institutions and governments will play a key role for both economies in enhancing finance and growth.

EVOLUTION OF SOCIALLY RESPONSIBLE MARKETING IN RUSSIAN SERVICE SECTOR

Though evidence of socially responsible behavior of companies appeared to be indisputable, the most problematic for any company is to align it with the employed marketing strategy and enhance the opportunities it can provide for creating competitive advantage and further innovation. Corporate social initiatives are often disconnected and fragmented, which causes constraints to analyze their prospects to cut expenses and increase revenues. The statistical data of a period of over four years show the continual growth in Russian service sector which can provide resources for “world-positive” business initiatives. Though authorities traditionally and usually force the ways of engaging business in financing social programs, the image of a socially responsible and environmentally friendly business provides opportunities for a sustainable upturn in Russian service sector.

The Relationship between Managerial Satisfaction and Job Turnover Intention: The Mediating Role of Job Satisfaction

The growth of service sector in Turkey occurs faster than the other sectors and the number of shopping malls increases correspondingly. The rapid growth of the number of shopping malls has necessitated the measurement of the attitudes of the employees in this sector. This study demonstrated that the gender, marital status and age were not the significant variables on job satisfaction, managerial satisfaction and job turnover intention; however, education status and income status were found to be significant variables on job satisfaction and job turnover intention. In addition, job satisfaction fully mediated the relationship between managerial satisfaction and job turnover intention.

What determines the growth of services sector in Pakistan? A comparison of ARDL bound testing and time varying parametric estimation with general to specific approach

Abstract. This empirical study followed time varying parametric approach (Kalman Filter) and auto regression distributed lag (ARDL) with general to specific approach to find out relevant macroeconomic determinants of Pakistan’s services sector’s growth. To our best of knowledge, no author has made such study that employed these estimation techniques to find out determinants of services sector growth in Pakistan while employing general to specific approach. Current study bridges this gap. Annual data was taken from World Development Indicators (2014) during period 1976-2014. Main findings of the study are that rolling regression estimates of explanatory variables justify the use of Kalman filtering approach. Results show that inflation has negative effect on services sector output growth in case of TVP approach. This result does match with ARDL results. Net foreign direct investment has positive and significant effect on services sector output growth in both techniques of estimation. Gross national expenditures with positive effect are the relevant significant determinants of services sector output growth at five percent significance level in case of TVP approach while relationship was insignificant in case of ARDL estimation. Impact of remittances received on services sector growth is negative in case of time varying parametric approach. This result is different from ARDL results where relationship is positive and significant at five percent level of significance. All the one step ahead state vectors confirmed the stability of models in case of time varying parametric approach. Cumulative sum of recursive residuals (CUSUM) and cumulative sum of recursive residuals square (CUSUMQ) also confirmed the stability of results of auto regression distributed lag. Based on these empirical findings, we conclude that government should focus on service sector growth augmenting factors while formulating any policy relevant to the concerned sector. Keywords. Services sector, Kalman filter, Rolling regression. JEL. C22, O11, O40.

The Effect of Restructuring on Labor Reallocation and Productivity Growth: An Estimation for Korea

Productivity is considered one of the most important factors for economic growth. Total productivity grows through technological progress or reallocation of resources. This paper analyses their contribution to economic growth for total economy and by sectors. The main finding is that economy-wide increases but this is mainly due to internal technological improvements. On the one hand, inter-sector reallocation of labor negatively contributes to economic growth as employment moves to service sectors with low productivity. Further, when looking at the sectoral-level productivity growth, both internal and external restructuring make positive contributions to aggregate economic growth. However, internal technological progress and reallocation of employment appear to similarly contribute to the sectoral-level economic growth in the manufacturing sector, whereas internal restructuring makes a larger contribution to economic growth in the service sector. This suggests that there is more room for reallocation of resources to contribute to the productivity growth in service sectors. Therefore, the productivity growth of the service sector would foster economy-wide productivity and it can be achieved by the mitigation of misallocation of resources in service sectors.

A general equilibrium analysis of FDI growth in Chinese services sectors

This paper analyzes one of the features of the Chinese economic transition, namely, the impact of foreign direct investment (FDI) accruing to advanced services sectors. To that aim we use an innovative computable general equilibrium (CGE) model that includes, in a multi-regional setting, foreign multinationals operating in monopolistic competition. The model is based on data that split the world economy in 2016 into 11 regions (China - US - EU27 - Great Britain -other advanced economies - India - Japan - South East Asia - Latin America - Middle East - Sub Saharan Africa) and 21 sectors. We provide quantitative evidence on several characteristics of the 21 sectors in China, EU27 and the US, as well as other data on the role of China in the global stage, including its evolution since 2004. Several scenarios focusing on the increase of FDI inflows in services, because of the reduction of its FDI barriers, are simulated deriving short and long run results. We find that the impact of more foreign multinationals in services is positive for China but smaller than the one that had been obtained in other previous studies on FDI in manufactures. This is due to the still limited role of services in the Chinese economy and to a crowding out effect that domestic firms experience after the entry of foreign multinationals. On the whole the impact is, however, slightly positive for China, because manufactures benefit from the entry of foreign services multinationals. The rest of regions are unaffected or benefit very slightly, due to the fact that services production is less export oriented and more devoted to private consumption than in the case of manufactures. However, their manufacturing sectors are slightly harmed by the stronger Chinese competition. Many of them manage to more than offset this latter trend through higher exports or FDI in services directed to China.

Sectoral output, energy use, and CO2 emission in middle-income countries

Middle-income countries are currently undergoing massive structural changes towards more industrialized economies. In this paper, we carefully examine the impact of these transformations on the environmental quality of middle-income countries. Specifically, we examine the role of sector value addition to GDP on CO2 emission nexus for middle-income economies controlling for the effects of population growth, energy use, and trade openness. Using recently developed panel methods that consider cross-sectional dependence and allow for heterogeneous slope coefficients, we show that energy use and growth of industrial and service sectors positively explain CO2 emissions in middle-income economies. We also find that population growth is insignificantly associated with CO2 emission. Hence, our paper provides a solid ground for developing a sustainable and pro-growth policy for middle-income countries.

CHALLENGES OF INTERNATIONALIZATION SERVICE ON GLOBAL MARKETS // IZAZOVI INTERNACIONALIZACIJE USLUGA NA GLOBALNOM TRŽIŠTU

Before a company decides to sell their products and services abroad, theymust fully understand the international marketing environment. The international environment, in the last two decades, has been creating new opportunities and problems. World trade and investment have grown rapidly thanks to attractive markets, especially in Western and Eastern Europe, China and Russia. As a result, the international financial system has become more complex, and companies involved in international trade are faced with rising trade barriers that were set to protect the domestic market from foreign competition.All the companies that compete in intern ational markets must first understand the international trading system. When sold in other countries, companies are faced with various limitations. Opportunities for export of services are large and growing. However, since trade creates jobs and holds the key to economic growth, the whole world wants a share in the growing service sector. The combination of environmental factors that contribute to the success of the organization in the local market, may be absent in foreign markets. This can lead to the failure of attempts to export the service formula. Global competition will continue to grow, which requires a better understanding of international service concepts, problems and challenges.

Economic growth and impact of services sector in india

Service sector is the lifeline for the social economic growth of a country. It is today the largest and fastest growing sector globally contributing more to the global output and employing more people than any other sector. Services sectors have become more important in recent years as advances in technology have permitted new means of providing services across borders. The growth in output in the sector in recent times has mostly come from the rapid development of skill intensive services in the information technology and professional service segments, mostly oriented toward the external market. This study investigates to growth, contribution and development of services sector in Indian economy. Further this study discusses to economic policy and impact of services sector.

Determinants of Services Sector Growth in Pakistan

Services sector is one of the important sectors of the economy. It contributes more than half of the GDP and has substantial share in country’s exports and employment. In this study we evaluated the factors affecting services sector output growth using annual data from 1975 to 2014 and ARDL method of estimation. Pakistan’s break up in two wings in December, 1971 and availability of data on most of the variables after 1975 determined the choice of sample period. Results show foreign trade, government expenditures, market size and population growth are the relevant determinants of services sector output growth in long run. In short run, services sector growth is affected by foreign trade and personal remittances. Diagnostic tests show absence of serial correlation and parameter stability. Based on estimated results, it is recommended that relevant authorities should implement policies that increase services sector output growth if they intend to augment overall economic growth of the country.

Differences in FDI Determinants by Sector: A Knowledge-capital Model Approach

This paper analyzed the differences in foreign direct investment (FDI) determinants of various sectors using the Knowledge-capital (KC) model framework. Specifically, it compared the differences in the influence of FDI determinants between the manufacturing and service sectors. In the empirical analysis of the Korean outward FDI, the study found that service FDI is likely more demand-seeking than manufacturing FDI. Moreover, service FDI does not tend to be largely affected by trade impediments, caused by the differences in idiosyncratic features between the two sectors. Although past manufacturing FDI is expected to lead current producer service FDI, which facilitates production of manufacturing goods, the Korean manufacturing FDI is not complementarily related to the Korean producer service FDI. Given the rapid growth of the global service sector, the Korean government needs to promote the overseas expansion of service companies through the reinforcement of the overseas expansion support system such as providing sufficient foreign market information, supporting R&D activities for new service development and quality upgrade, and improving the customized financial support system.

FDI and Growth of Service Sector in India

In the contemporary globalised economy, service sector attracts the major share of Foreign Direct Investment (FDI) in the world. India being a part of this phenomenon also attracts most of its FDI in the service sector. The present paper highlights the trend in FDI movement in the world in general and India in particular. Further, it reviews the FDI policy in India in the post liberalized period. The growth of FDI in services sector may be attributed to the changing pattern of global FDI and also the liberalization and globalization policies pursued by India. Since 2000, the high inflow of FDI has resulted in the growth of new services viz., financial and non-financial services, telecommunication, computer software and hardware, hotel and tourism, construction activities and real estate. The growth of services sector had led to the growth of export of services from India which now accounts the majority of export from the country.Keywords: FDI, Services sector, Export, Liberalization.

The relationship between the growth in the health sector and inbound health tourism: the case of Turkey.

One of the consequences of globalisation for Turkey, as well as in other emerging countries, has been an increasing trend in health tourism. Households have been considered choice the best option in terms of price and alternative possibilities while they have been solved their health problems. Previous studies have argued that the main drivers of the growth of inbound health tourism to developing countries are lower costs, shorter waiting periods, and better quality of care. This study aimed to test the effect of health and social service sector growth on the flow of inbound health tourism between 2004:Q1 and 2015:Q4 by employing Granger causality and Johansen cointegration approaches. Our findings suggested that there is a long-run Granger causality from domestic health and social work expenditures to health tourism income whereas this is non-existence in the opposite direction.

Is Industrial Production Still the Dominant Factor for the US Economy?

We propose a new class of large approximate factor models which enable us to study the full spectrum of quarterly Industrial Production (IP) sector data combined with annual non-IP sectors of the economy. We derive the large sample properties of the estimators and test statistics for the new class of unobservable factor models involving mixed frequency data and common as well as frequency-specific factors. Despite the growth of service sectors, we find that a single common factor explaining 90% of the variability in IP output growth index also explains 60% of total GDP output growth fluctuations. A single low frequency factor unrelated to manufacturing explains 14% of GDP growth. The picture with a structural factor model featuring technological innovations is quite different. Last but not least, our identification and inference methodology rely on novel results on group factor models that are of general interest beyond the mixed frequency framework and the application of the paper.