An empirical analysis of the service sector transformation in SAFTA member countries

Abstract

This paper makes an attempt to assess the transformation process of the service sector in
South Asian Free Trade Area (SAFT A) by using a panel data over the period 1990 to 2010. Based
on the regression analysis, the study investigates the existence and association between the output
of the service sector and per capita national output by applying panel least squares along with fixed
effects and random effects. The generalized least squares (GLS) approach with fixed effect
estimation comes in handy in our analysis. The study reveals that the Gross Domestic Product
(GDP) have a meaningful positive effect whereas urban population growth have a significant
negative effect on the transformation process of the service producing sector in the SAFT A region.
On the other hand, unlike some other papers, population does not appear to be significant factor of
growth in service for the members of SAFT A. The study also observes that factors such as debt
services on external debt are negatively related to the share of services while it is positively related
to the gross fixed capital formation.

Date of Award	2012
Original language	American English
Awarding Institution	Eastern Illinois University
Supervisor	A. Désiré Adom (Supervisor)