ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Archana AggarwalSubscribe to Archana Aggarwal

Behind the Veil of Finance

Things Fall Apart: From the Crash of 2008 to the Great Slump by Ramaa Vasudevan (Sage India), 2013; pp 227, Rs 695.

India's Services Sector

There are various problems in looking at services as the gateway to development in India. First, the sectoral shift of the gross domestic product in favour of services has not been matched by concomitant changes in employment patterns. Second, the services sector has exhibited a dualism wherein the fastest growing services are the high productivity, low employment-generating ones. And lastly, but signifi cantly, much of the growth in services has necessitated the transfer of resources to the private corporate sector and destruction of livelihoods of people dependent on such resources.

Harvest of Despair

out that PTAs can lead to trade creation, if due to the formation of the regional agreement, PTA members switch from inefficient domestic producers and import more from efficient producers from other members of the PTA. In this case, efficiency gains arise from both production efficiency and consumption efficiency. On the other hand, trade diversion takes place if, because of the PTA, members switch imports from low-cost production in the rest of the world and import more from higher-cost producers in the partner countries. Trade diversion lowers welfare of not only the partner countries, but the rest of the world also.
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