Globalisation and Service Sector

6793 WordsJul 10, 201228 Pages
Globalisation and Service Sector : Input-Output Analysis Rita Bhowmik Jadavpur University, Kolkata- 700032. Email : rita_bhowmik2003@ yahoo.co.in A B S R A C T Globalization implies a comprehensive and self-evident process working towards establishing a worldwide aggregative whole of an economic structure into which all economies of the world must integrate today or tomorrow. This includes services which in most economies are the single largest contributor to economic growth and employment. It is widely recognized and deliberated upon that the global importance of service sector in terms of its share in Gross Output has been growing progressively in the economies of the world. The objective of this paper is to…show more content…
The expansion of government sector has with casual relationship with developments in either agriculture or industry ( Mitra , 1988) . Traditionally services activities have not been traded internationally because trade was technically impossible and /or prohibited by domestic regulation (an exception must be made for transportation services) (Jones and Raune, 1990). Consequently the markets for services products have essentially non-traded, with price and output being determined by domestic supply and demand. Hill (1977) has characterized services as evolving the simultaneous location of consumption and production, thereby ruling out the idea of a tradeable service product. But Hill's definition simple relates to contact services ( Hindley & Smith, 1984; Sampson & snape, 1985; Bhagawati, 1987). There exits a range of services, e.g., engineering services, certain management-consulting and accounting services, legal services, data processing and telecommunications services and financial and insurance services which do permit a separation of the location of production and consumption in space as well as time , so that service trade may take either at the factor or at the product level (Melvin,1987). Trade in either the services factor or the services product improves economic welfare and the extent of welfare
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