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Leveraging Service Sector Growth in the Philippines


  • Mitra, Raja Mikael

    (Asian Development Bank)


The Philippines is often referred to as a country from which export of services rather than manufactured goods is the principal engine for economic growth, as the share of the service sector in gross domestic product has exceeded that of the industry sector since the mid-1980s. Three major opportunities for leveraging service sector growth stands out. One is expanding the scale and scope of the export and domestic markets for information technology-business process outsourcing and other modern services in urban areas. Second is expanding tourism to foster economic development across social groups and regions including poor and remote rural areas. Third is enhancing the domestic prospects for Filipino technical, managerial, and entrepreneurial talent so they will work in the Philippines rather than overseas. To take advantage of those opportunities, there is a need for concerted efforts to improve infrastructure; logistics; broadband connections; the power supply; and education, healthcare, financial, legal, and public administration services and more generally the overall business environment for foreign investors and local entrepreneurs.

Suggested Citation

  • Mitra, Raja Mikael, 2013. "Leveraging Service Sector Growth in the Philippines," ADB Economics Working Paper Series 366, Asian Development Bank.
  • Handle: RePEc:ris:adbewp:0366

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    References listed on IDEAS

    1. Ghani, Ejaz & Kharas, Homi, 2010. "The Service Revolution," World Bank - Economic Premise, The World Bank, issue 14, pages 1-5, May.
    2. Shaohua Chen & Martin Ravallion, 2010. "The Developing World is Poorer than We Thought, But No Less Successful in the Fight Against Poverty," The Quarterly Journal of Economics, Oxford University Press, vol. 125(4), pages 1577-1625.
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    Cited by:

    1. del Prado, Fatima, 2015. "The BPO Challenge: Leveraging Capabilities, Creating Opportunities," Research Paper Series DP 2015-36, Philippine Institute for Development Studies.
    2. del Prado, Fatima, 2015. "The BPO Challenge: Leveraging Capabilities, Creating Opportunities," Discussion Papers DP 2015-36, Philippine Institute for Development Studies.

    More about this item


    services; growth; Philippines; Asia; business process outsourcing; information technology; migration; diaspora; tourism; innovation; knowledge economy;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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