Services Reform and Manufacturing Performance: Evidence from India
By Jens Matthias Arnold, B. Javorcik, Molly Lipscomb, Aaditya Mattoo. 2012
462 citations recorded by the source corpus.
The growth of India's manufacturing sector since 1991 has been attributed mostly to trade liberalization and more permissive industrial licensing. This paper demonstrates the significant impact of a neglected factor: India's policy reforms in services. The authors examine the link between those reforms and the productivity of manufacturing firms using panel data for about 4,000 Indian firms from1993 to 2005. They find that banking, telecommunications, insurance and transport reforms all had significant, positive effects on the productivity of manufacturing firms. Services reforms benefited both foreign and locally-owned manufacturing firms, but the effects on foreign firms tended to be stronger. A one-standard-deviation increase in the aggregate index of services liberalization resulted in a productivity increase of 11.7 percent for domestic firms and 13.2 percent for foreign enterprises.
Subfields: Accounting, Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/1e53d6bcfbb25c3b76ce926bd72bd86cede1c525
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Citations in the corpus
- Services productivity, trade policy and manufacturing exports (2017, unknown): “Consistent with what has been found in country-specific empirical studies (Arnold et al., 2011, 2014; Fernandes and Paunov, 2012; Duggan et al. 2013), we find a strong linkage between services and manufacturing performance.”
- Territorial servitization: Exploring the virtuous circle connecting knowledge-intensive services and new manufacturing businesses (2017, background): “The market and economic relevance of knowledge-intensive service businesses translates into increased academic research (see e.g., Rocha & Sternberg, 2005; Lafuente et al., 2010; Arnold et al., 2016; Jacobs et al., 2016), and these two elements have led many European governing bodies to turn their a”
- Product-service innovation and performance: the role of collaborative partnerships and R&D intensity (2019, unknown): “Recent research findings showing that product and service firms’ co-location and service reforms (Arnold et al., 2016) in a specific geographical area enhance territorial competitiveness, suggest the need for research inquiry into how industrial clusters with a multi-sector (i.”
- Trouble in the Making?: The Future of Manufacturing-Led Development (2017, unknown): “Evidence from the Czech Republic, India, and Sub-Saharan Africa shows that this “servicification” of manufacturing has improved manufacturing productivity (Arnold et al. 2010; Arnold, Javorcik, and Mattoo 2011; Arnold, Mattoo, and Narciso 2008).”