Question

1. How service affects economic development?

2. Is it possible for an economy to be based entirely on services?

Answer 1

Answer:

The relationship between services growth and overall economic growth has become stronger in the past two decades as services' average contribution to GDP and value added has increased. In 2015, services' value added accounted for 74 percent of GDP in high-income countries, up from 69 percent in 1997.

Yes, it is possible for an economy to be entirely service based but it won't be as productive or wealthy as other economies that have other more lucrative sectors.

Answer 2

1. The relationship between services growth and overall economic growth has become stronger in the past two decades as services' average contribution to GDP and value added has increased. In 2015, services' value added accounted for 74 percent of GDP in high-income countries, up from 69 percent in 1997.

2. No.

You either need some farming or production (what would you serve without some goods; also food is necessary) or you need a huge number of imports. This isn’t to say that we can’t have the largest sector as service, since we could theoretically automate most other jobs (in 100 years time we went from 80% of people doing some farming and agricultural to under 5% doing farming and ag, while increasing the production of food), but you’d have to have something else.

The only societies I can think of that work with a 100% workforce in a single sector are farmers and traders.