The impact of the new generation mobile apps on services sector

Abstract

A General Vehicle Technology such as Computer Applications and Internet Penetration affects all sectors of Economy. Previous studies have quantified the extent of growth in GDP that occurs due to a given growth level in internet subscriptions. However, the immediate impact of mobile app usage is naturally on services sector growth rather than the overall GDP. Since September 2016, when Reliance Jio unleashed a data price war, the app-based services sector saw a phenomenal growth. Taking this well-known fact into account, this paper constructs a regression model between mobile internet subscription and the growth of services sector in six states of India for the period 2014-18. The study also enquires if the spurt of mobile data usage since the year 2017 has resulted in a corresponding growth on services sector GSDP in the target states. Although there exists an extremely strong correlation between the growth of wireless internet subscriptions and the growth of services sector in the target states, the spurt in data usage since 2017 hasn’t resulted in a corresponding spurt in the growth of services sector. The study explores the implications of such results obtained through regression analysis between mobile internet and the growth in services sector GSDP.