Amfiteatru Economic (Nov 2012)
Contribution of Services to Economic Development
Abstract
Service activities have become the main engine for sustainable development. The share of services in the global economic output is about 70% and their contribution to global employment is about 40%. There are substantial differences between countries and regions of the world in the development of services sector, the share of tertiary activities in both output and employment being higher in strong industrialized economies, but growing rapidly in developing and transition economies as well. As services tend to become essential inputs for every activity, service productivity is a key factor of economic performance not only directly, but also by its multiplier effects spread all over the economy, including manufacturing and agriculture. From a qualitative point of view, services are at the core of transformative processes toward more inclusive societies, reconciliation between economic growth and environment preservation, enhancing knowledge production and improving the exploitation of technological advances, and better governance.
