What is it about?
The study applies the concept of the J-curve in India's service trade. The study finds that certain sectors show a J-curve, while others do not. In doing so, the study opens up a wide range of possibilities for further expanding on the application of the J-curve concept.
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Why is it important?
The study is important because it is one of the first group of studies to apply the concept of the J-curve (which has been historically applied to the study of goods trade between trading partners) into the trade in services.
Perspectives
The findings of the study are heavily contingent on multiple factors, including the trading partner under consideration and the means of finding their GDP contribution. In this study, India's trading partner is the 'Rest of the World,' whose GDP is proxied using the Index of Industrial Production. While the sum total of the GDP of all other countries could have been added up to arrive at the world GDP, data sources do not contain entries of all countries and there are some missing entries, which could alter the findings of the study. Secondly, the 'Rest of the World' trading partner is an aggregated variable. On the other hand, specific countries are disaggregated variables. Therefore, the results of the study would vary depending on the choice of trading partner.
Neeraj B R
Indian Institute of Technology Madras
Read the Original
This page is a summary of: India’s Service Trade and Asymmetry in J-curve: The Evidence from Linear and Nonlinear Models, South Asia Economic Journal, May 2025, SAGE Publications,
DOI: 10.1177/13915614251333583.
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