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Is growth of services an obstacle to productivity growth? A comparative analysis

  • Maroto-Sánchez, Andrés
  • Cuadrado-Roura, Juan R.

The relationship between economic structure and productivity growth has been a subject of increasing interest over recent decades. The innovative focus of this paper concerns the role of the service sector in this relationship. Services play a core role in advanced economies, both from a quantitative and a strategic point of view. However, empirical research in this area lies considerably behind the research into the agricultural and manufacturing sectors. This paper focuses on the impact of tertiarisation on overall productivity growth, using a sample of 37 OECD countries in the period between 1980 and 2005. The results partially refute traditional knowledge on the productivity of services. Contrary to what conventional theories suggest, this research demonstrates that several tertiary activities have shown dynamic productivity growth rates, while their contribution to overall productivity growth plays a more important role than was historically believed.

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Article provided by Elsevier in its journal Structural Change and Economic Dynamics.

Volume (Year): 20 (2009)
Issue (Month): 4 (December)
Pages: 254-265

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Handle: RePEc:eee:streco:v:20:y:2009:i:4:p:254-265
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