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Abstract
In recent years, there has been growing attention to service sector in the
world economies. This study analyses service sector in Brazil, Russia, India,
Indonesia and China (BRIIC), which are five of the largest economies in
today’s developing world. We examine how the services links with overall
economic activities and what drives its growth in the period 2000-2010.
This research finds that in BRIIC economies, final demand in other sectors
has not enhanced services output. Furthermore, using structural
decomposition analysis, this study investigates various aspects which
contribute to the growth of services output, which are final domestic
demand, export, and changes in technology. The result suggests that in
BRIIC economies, final domestic demand has been the main driver of the
growth of services that exceeded more than 70% of overall effect in all
economies. Domestic final demand for services contributed higher than the
non-services one.
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References
- Amin, Mohammad and Aaditya Mattoo (2006), “Do Institutions Matter More for Services?â€, World Bank Policy Research Working Paper No. 4032.
- Arnold, Javorcik, Lipscomb and Mattoo (2012), “Services Reform and Manufacturing Performance: Evidence in Indiaâ€, The World Bank.
- Arvis, Mustra, Ojala, Shepherd and Saslavsky (2010), “Trade Logistics in the Global Economyâ€, The World Bank Policy Research Working Paper.
- Baldwin, Richard (2006), “Globalisation: The Great Unbundling(s)â€, Prime Minister’s Office, Economic Council of Finland.
- Damuri, Yose Rizal (2012), “Roles of Services Sector in Economic Activitiesâ€. Indonesian Employers’ Association, presented in Indonesia Services Dialogue, Jakarta 30 November 2012.
- Duggan, Victor, et al. (2013), “Service Sector Reform and Manufacturing Productivity: Evidence from Indonesiaâ€, The World Bank Policy Research Working Paper.
- Eichengreen and Gupta (2009), “The Two Waves Of Service Sector Growthâ€. NBER Working Paper Series 14968.
- European Commission (2003), “The Competitiveness of Business-Related Services and Their Contribution to the Performance of European Enterprisesâ€, COM (2003), http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2003:0747:FIN:EN:PDF
- Goswami, A. G., A. Mattoo and S. Sáez, ed. (2012), “Exporting Services: A Developing-Country Perspectiveâ€, The World Bank.
- Heineman Jr., Ben W. (2013), “Why We Can All Stop Worrying About Offshoring and Outsourcingâ€, The Atlantic March 26th, 2013. Online: http://www.theatlantic.com/business/archive/2013/03/why-we-can-all-stop-worrying-about-offshoring-and-outsourcing/274388/
- Mărgulescu, Serghei and Elena Mărgulescu (2014), “Reshoring in Manufacturing and Servicesâ€, Global Economic Observer No. 1, vol. 2/2014.
- Miller, R.E., and P.D. Blair (2009), “Input-Output Analysis: Foundations and Extensionsâ€, Cambridge UK, Cambridge University Press.
- OECD (1996), “The Knowledge-Based Economyâ€.
- OECD (2007), “Summary Report of The Study on Globalisation and Innovation in The Business Services Sectorâ€.
- OECD (2008), “Globalisation and Emerging Economies: Brazil, Russia, India, Indonesia, China and South Africaâ€.
- Roy S., T. Das and D. Chakraborty (2002), “A Study on The Indian Information Sector: An Experiment with Input-Output Techniquesâ€, Economic Systems Research, 14:2, 107-129, DOI: 10.1080/09535310220140924.
- The Economist (2013), “Special Report Outsourcing and Offshoring: Here, there and everywhereâ€, January 19th, 2013. Online:
- http://www.economist.com/sites/default/files/20130119_offshoring_davos.pdf
- Tijaja, Julia Puspadewi (2013), “The Proliferation of Global Value Chains: Trade policy considerations for Indonesiaâ€, The International Institute for Sustainable Development.
- Timmer, Marcel P., editor (2012), “The World Inputâ€Output Database (WIOD): Contents, Sources and Methodsâ€, WIOD Working Paper Number 10. Online: at http://www.wiod.org/publications/papers/wiod10.pdf
- Toh, M .H., and S. M. Thangavelu (2013), “An Input–Output Study of The Singapore Information Sectorâ€, Economic Systems Research, 25:2, 233-244, DOI: 10.1080/09535314.2012.740616.
- Tybout, James R. (2000). Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?. Journal of Economic Literature Vol. XXXVIII (March 2000) pp.11–44.
References
Amin, Mohammad and Aaditya Mattoo (2006), “Do Institutions Matter More for Services?â€, World Bank Policy Research Working Paper No. 4032.
Arnold, Javorcik, Lipscomb and Mattoo (2012), “Services Reform and Manufacturing Performance: Evidence in Indiaâ€, The World Bank.
Arvis, Mustra, Ojala, Shepherd and Saslavsky (2010), “Trade Logistics in the Global Economyâ€, The World Bank Policy Research Working Paper.
Baldwin, Richard (2006), “Globalisation: The Great Unbundling(s)â€, Prime Minister’s Office, Economic Council of Finland.
Damuri, Yose Rizal (2012), “Roles of Services Sector in Economic Activitiesâ€. Indonesian Employers’ Association, presented in Indonesia Services Dialogue, Jakarta 30 November 2012.
Duggan, Victor, et al. (2013), “Service Sector Reform and Manufacturing Productivity: Evidence from Indonesiaâ€, The World Bank Policy Research Working Paper.
Eichengreen and Gupta (2009), “The Two Waves Of Service Sector Growthâ€. NBER Working Paper Series 14968.
European Commission (2003), “The Competitiveness of Business-Related Services and Their Contribution to the Performance of European Enterprisesâ€, COM (2003), http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2003:0747:FIN:EN:PDF
Goswami, A. G., A. Mattoo and S. Sáez, ed. (2012), “Exporting Services: A Developing-Country Perspectiveâ€, The World Bank.
Heineman Jr., Ben W. (2013), “Why We Can All Stop Worrying About Offshoring and Outsourcingâ€, The Atlantic March 26th, 2013. Online: http://www.theatlantic.com/business/archive/2013/03/why-we-can-all-stop-worrying-about-offshoring-and-outsourcing/274388/
Mărgulescu, Serghei and Elena Mărgulescu (2014), “Reshoring in Manufacturing and Servicesâ€, Global Economic Observer No. 1, vol. 2/2014.
Miller, R.E., and P.D. Blair (2009), “Input-Output Analysis: Foundations and Extensionsâ€, Cambridge UK, Cambridge University Press.
OECD (1996), “The Knowledge-Based Economyâ€.
OECD (2007), “Summary Report of The Study on Globalisation and Innovation in The Business Services Sectorâ€.
OECD (2008), “Globalisation and Emerging Economies: Brazil, Russia, India, Indonesia, China and South Africaâ€.
Roy S., T. Das and D. Chakraborty (2002), “A Study on The Indian Information Sector: An Experiment with Input-Output Techniquesâ€, Economic Systems Research, 14:2, 107-129, DOI: 10.1080/09535310220140924.
The Economist (2013), “Special Report Outsourcing and Offshoring: Here, there and everywhereâ€, January 19th, 2013. Online:
http://www.economist.com/sites/default/files/20130119_offshoring_davos.pdf
Tijaja, Julia Puspadewi (2013), “The Proliferation of Global Value Chains: Trade policy considerations for Indonesiaâ€, The International Institute for Sustainable Development.
Timmer, Marcel P., editor (2012), “The World Inputâ€Output Database (WIOD): Contents, Sources and Methodsâ€, WIOD Working Paper Number 10. Online: at http://www.wiod.org/publications/papers/wiod10.pdf
Toh, M .H., and S. M. Thangavelu (2013), “An Input–Output Study of The Singapore Information Sectorâ€, Economic Systems Research, 25:2, 233-244, DOI: 10.1080/09535314.2012.740616.
Tybout, James R. (2000). Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?. Journal of Economic Literature Vol. XXXVIII (March 2000) pp.11–44.