Can Total Factor Productivity Explain Value Added Growth in Services?

Publication year: 2011 Source: Journal of Development Economics, Available online 17 December 2011 Rubina Verma This paper examines the factors responsible for generating the services led growth witnessed in the Indian economy during 1980-2005. A sectoral growth accounting exercise shows that total factor productivity (TFP) growth was the fastest for services; moreover this TFP increase was significant in accounting for service sector value added growth. A growth model with agriculture, industry and services as three principal sectors is calibrated to Indian data using sectoral TFP growth rates

Publication year: 2011 Source: Journal of Development Economics, Available online 17 December 2011 Rubina Verma This paper examines the factors responsible for generating the services led growth witnessed in the Indian economy during 1980-2005. A sectoral growth accounting exercise shows that total factor productivity (TFP) growth was the fastest for services; moreover this TFP increase was significant in accounting for service sector value added growth. A growth model with agriculture, industry and services as three principal sectors is calibrated to Indian data using sectoral TFP growth rates

Original post:
Can Total Factor Productivity Explain Value Added Growth in Services?