Question

Discuss the significance and growth of the service sector in modern economic development.

Answer 1

Services occur at many different levels. Some are geared to industry, some to people; and some to both industry and people, e.g. the transport systems. Low-order services, such as grocery, shops and laundries, are more common and widespread than high-order services or more specialized ones like those of accountants, consultants and physicians. Services are provided to individual consumers who can afford to pay for them. For example the gardener, the launderers and the barber do primarily physical labour. Teacher, lawyers, physicians, musicians and others perform mental labour.

Service sector is well developed in regions where there is high technological and educational know how. There is an increase in international trade of services. Services once generated can be easily availed by many and provide high monetary value in terms of wages, service charges etc. As a country develops, more and more people shift to tertiary activities and the share of tertiary activities in the GDP is even faster. Service sector provides the most lump some amount of foreign exchange and income for the country. Therefore service sector is a major contributor in the modern economic development.