An appraisal of India’s comparative advantage in information technology exports

comparative advantage in information technology exportsResearchers of the School of Liberal Arts and Social Sciences have worked on India’s comparative advantage in information technology exports with competing developing nations, including China, the Philippines, Malaysia, and Brazil. The latest paper published by Assistant Professor Dr Manzoor Hassan Malik, Department of Economics and Assistant Professor Dr Aehsan Ahmad Dar, Department of Psychology, has implications for attaining sustainability in IT export growth. It is suggested that policies are directed at enhancing the overall performance of the IT sector. The novelty of the present study lies in the estimation of India’s competitiveness in IT exports in relation to the group of reference countries, namely China, the Philippines, Malaysia, and Brazil. With its policy recommendations, this research is helping to shape the sustainability of the IT sector.

The paper titled An appraisal of India’s comparative advantage in information technology exports was published in the Journal of Chinese Economic and Foreign Trade Studies with an impact factor of 1.560.

Abstract

The purpose of this study is to estimate revealed comparative advantage and Normalised Revealed Comparative Advantage (NRCA) indices of India’s Computer and Information Services (CIS) export competitiveness about Information Technology (IT) competing developing nations, such as China, Philippines, Malaysia and Brazil. Using annual data of total exports for CIS, transportation (TNS), travel (TVL) and insurance (INS) services under service categories of the balance of payment, the present study estimates the pattern of Comparative Advantage (CA) in India’s CIS exports with respect to IT competing developing nations such as China, Philippines, Malaysia and Brazil from 2000 to 2018. The choice of the study period is determined by the availability of consistent data on IT service exports of these nations. The study also estimates the export position of CIS export in comparison to India’s traditionally strong commercial services export of TNS, TVL and INS during the study period. Both indices showed that India had a strong CA in CIS compared to the selected nations, indicating India’s relative export performance to be stronger than that of China, Malaysia, the Philippines, and Brazil. The cross-service index showed that India’s relative specialisation level in CIS with respect to the world’s average specialisation level was stronger than its relative specialisation level in TNS, TVL and INS services. Furthermore, The NRCA cross-nation index showed that India’s NRCA index score has been declining since 2010 with respect to these nations, which implied a decline in the competitiveness of CIS. On the other hand, NRCA has increased in the case of the Philippines, Malaysia and Brazil for most of the period post-2010.

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