Trade in Transport Services – A Framework for Evolution along Value Chain
19 Pages Posted: 17 Nov 2016
Date Written: November 16, 2016
Transportation is the fulcrum around which world trade – both merchandise and services have been growing. Over the last few decades there has been a delinking of goods and its associated services – mainly due to evolution of technology. This has created a separate set of industries which are growing and globalizing very fast eg financial services, documentation and customer information and handling. Globalization and reduction of physical barriers has also been another benefit of evolution of technology especially the evolution of information and communication technologies. The pressure on implementing first GATT and then GATS is in line with an aim to speed up the impact of these trends.
This trend is not withstanding, there has been an evolution of economies from knowledge and skill levels point of view where technology and resources have played a critical role. This is also seen with respect to composition of trade and services. We take the concept of services matrix and develop a framework as to how firms and in turn countries can evolve along the value chain. We take the case of Indian railways and explain the framework.
India is also trying to utilize and evolve along this services matrix. Looking at Indian railways, we see that Indian railways have not gone beyond being a user of technology. It imports and uses it. It has never made an attempt to develop and leverage technologies related to running of trains. This paper suggests a way for Indian railways to develop this path of evolution as Chinese railways are doing.
Keywords: Transportation, Services Matrix, Framework for Evolution, Value Chain
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