The Tertiary Sector Is Going to Dominate the World Economy; Should We Worry?
AbstractThis paper explains some practical experiences on service sector growth as well as its contribution to the economy throughout the world. In rich countries, service contributions are comparatively higher than that in poor countries. But service sector growth rates are higher in the poor countries in comparison to the rich counterparts. This study is a good witness to service sector’s supremacy in the present era. This paper is trying to reach a decision – weather high sectoral difference make disturbance to economic growth or not? It is found that high service sector share in the economy is a cause of slower economic growth. Nonetheless, in the long run, slower growth rates cannot make noteworthy disturbances to the economy. Because, service sector has a self correction motive through the income effect. Some policy suggestions are included here to manage short and mid term effects of high sectoral difference (high service contribution in the economy).
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 14681.
Date of creation: 14 Aug 2008
Date of revision:
Economic Growth; Income Effect; Sectoral Participation Ratio; Service Sector Share; Tertiary sector;
Find related papers by JEL classification:
- B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert Gordon, 1995.
"Problems in the Measurement and Performance of Service-Sector Productivity in the United States,"
RBA Annual Conference Volume,
in: Palle Andersen & Jacqueline Dwyer & David Gruen (ed.), Productivity and Growth
Reserve Bank of Australia.
- Robert J. Gordon, 1996. "Problems in the Measurement and Performance of Service-Sector Productivity in the United States," NBER Working Papers 5519, National Bureau of Economic Research, Inc.
- Nicholas Oulton, 2000.
"Must the growth rate decline? Baumol's unbalanced growth revisited,"
Bank of England working papers
107, Bank of England.
- Oulton, Nicholas, 2001. "Must the Growth Rate Decline? Baumol's Unbalanced Growth Revisited," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 605-27, October.
- W. Erwin Diewert, 1995. "Price and Volume Measures in the System of National Accounts," NBER Working Papers 5103, National Bureau of Economic Research, Inc.
- Sirilli, Giorgio & Evangelista, Rinaldo, 1998. "Technological innovation in services and manufacturing: results from Italian surveys," Research Policy, Elsevier, vol. 27(9), pages 881-899, December.
- L. Rachel Ngai & Christopher Pissarides, 2005.
"Structural change in a multi-sector model of growth,"
LSE Research Online Documents on Economics
4656, London School of Economics and Political Science, LSE Library.
- L. Rachel Ngai & Christopher A. Pissarides, 2007. "Structural Change in a Multisector Model of Growth," American Economic Review, American Economic Association, vol. 97(1), pages 429-443, March.
- Ngai, L. Rachel & Pissarides, Christopher A., 2005. "Structural Change in a Multi-Sector Model of Growth," IZA Discussion Papers 1800, Institute for the Study of Labor (IZA).
- L. Rachel Ngai & Christopher Pissarides, 2007. "Structural change in a multi-sector model of growth," LSE Research Online Documents on Economics 4468, London School of Economics and Political Science, LSE Library.
- L. Rachel Ngai & Christopher Pissarides, 2004. "Structural change in a multi-sector model of growth," LSE Research Online Documents on Economics 3550, London School of Economics and Political Science, LSE Library.
- Ngai, Liwa Rachel & Pissarides, Christopher, 2004. "Structural Change in a Multi-Sector Model of Growth," CEPR Discussion Papers 4763, C.E.P.R. Discussion Papers.
- Elfring, Tom, 1989. "New Evidence on the Expansion of Service Employment in Advanced Economies," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 35(4), pages 409-40, December.
- Zvi Griliches, 1992. "Output Measurement in the Service Sectors," NBER Books, National Bureau of Economic Research, Inc, number gril92-1, Ekim.
- Gordon, Robert J, 1995.
"Is There a Trade-off between Unemployment and Productivity Growth?,"
CEPR Discussion Papers
1159, C.E.P.R. Discussion Papers.
- Robert J. Gordon, 1995. "Is There a Tradeoff between Unemployment and Productivity Growth?," NBER Working Papers 5081, National Bureau of Economic Research, Inc.
- Robert Stehrer, 2005. "Employment, Education and Occupation Structures: A Framework for Forecasting," wiiw Research Reports 315, The Vienna Institute for International Economic Studies, wiiw.
- Francois, Joseph & Reinert, Kenneth A, 1995. "The Role of Services in the Structure of Production and Trade: Stylized Facts from a Cross-Country Analysis," CEPR Discussion Papers 1228, C.E.P.R. Discussion Papers.
- Carmen Ãlvarez-Albelo & RaÃºl HernÃ¡ndez-MartÃn, 2007. "Explaining High Economic Growth in Small Tourism Countries with a Dynamic General Equilibrium Model," Working Papers, Xarxa de ReferÃ¨ncia en Economia Aplicada (XREAP) XREAP2007-06, Xarxa de ReferÃ¨ncia en Economia Aplicada (XREAP), revised Jul 2007.
- Eileen Appelbaum & Ronald Schettkat, 1999. "Are Prices Unimportant? The Changing Structure of the Industrialized Economies," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 21(3), pages 387-398, April.
- W. Erwin Diewert, 2006. "Comment on "Aggregation Issues in Integrating and Accelerating the BEA," NBER Chapters, in: A New Architecture for the U.S. National Accounts, pages 287-308 National Bureau of Economic Research, Inc.
- Andreas Breitenfellner & Antje Hildebrandt, 2006. "High Employment with Low Productivity? The Service Sector as a Determinant of Economic Development," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 110â€“135.
- Mattoo, AAditya, 2002. "China's accession to the World Trade Organization - The services dimension," Policy Research Working Paper Series 2932, The World Bank.
- Badi H. Baltagi & Seuck H. Song & Byoung C. Jung, 2002. "A comparative study of alternative estimators for the unbalanced two-way error component regression model," Econometrics Journal, Royal Economic Society, vol. 5(2), pages 480-493, 06.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.