What is the role of service sector in economic development?
What is the role of service sector in economic development?
Service sector provides finance, marketing, transport, insurance for the development of the agriculture sector. The expansion of service sector activities boost the secondary sector activities as well. Service sector can play a major role in reducing inequalities in the distribution of income in the economy.
Why service sector is growing faster in developing countries?
The development in agriculture and industrial sector has increased the need of services such as transportation, storage and trade. As per income of the people increased the demand for services like tourism, retailing, catering and elite educa- tion also increased.
Why is the services sector important to the world economy?
Services generate more than two-thirds of economic output, attract over two-thirds of foreign direct investment, and provide almost two-thirds of jobs in developing countries and four-fifths in developed ones. Services now seem to be transforming international trade in similar ways.
Which economic sector are service jobs?
Service industries are an important part of a functioning society and growing economy….Examples of service industries
- Hospitality. The hospitality industry includes hotels, restaurants and bars.
- Tourism.
- Finance.
- Fitness.
- Beauty and wellness.
- Mechanical.
- Media and entertainment.
- Design.
Why are service sector activities becoming important?
1. With the increase in population, the number of hospitals, schools, banks, tourism facility demands has also increased. 2. With the increase in the number of working women, the demand for certain facilities like cook, housekeeper, daycare has increased.
Why service sectors are growing?
Rising Demand for Services Demand for services is on the rise with a stable middle class and growth in upper-income families. A sector of the economy becoming less concerned about material needs. In the consumer sector, this leads to increasing demand for services such as health, education and entertainment.
What are the reasons for the growth of service sector?
Reasons for growth of the tertiary sector
- Improved labour productivity. A key factor behind tertiarisation is improved labour productivity.
- Globalisation.
- Income elasticity of demand.
- Rising real incomes/ wages.
- More leisure time.
- Technology.
Which sector of economy is most important for economic development?
Generally, it has been noted from the histories of many, now developed, countries that at initial stages of development, primary sector was the most important sector of economic activity.
Why service sector is important?
At present, the service sector contributes the maximum share in country’s net national product at factor cost (national income). According to 2000-01, 48.5 % share of national income comes from service sector and moreover, 22.9% of total working population are employed in this sector.
What is service sector give some examples?
The service sector, also known as the tertiary sector, is the third tier in the three-sector economy. Instead of product production, this sector produces services maintenance and repairs, training, or consulting. Examples of service sector jobs include housekeeping, tours, nursing, and teaching.
How can service sector reduce educated unemployment in India?
2 Answers. There has been tremendous change in the communication technology which has opened a wide range of jobs for educated people. Business Process Outsourcing (BPO) has brought in new kinds of employment opportunities. They provide services to people located across the globe using telecommunication links.
Which sector is most important in developed countries?
The service sector
In the past 100 years, there has been a further shift from secondary to tertiary sector in developed countries. The service sector has become the most important in terms of total production. Most of the working people are also employed in the service sector. This is the general pattern observed in developed countries.