Explain any five reasons for the service sector growth in ildia
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What is the reason for the growth in the service sector since the 60s?
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Sandeepan Bose, Armchair Economist
Answered Oct 27, 2016
You haven't mentioned the geographical context related with growth of services sector since 1960s. The growth in services sector is the ultimate objective for any economy in the world. Manufacturing seemed to be the rage in the 60s but it isn't so hot as Asian countries with low wages prove to be more profitable in this sector and will remain as long as there is a disparity in standards of living between countries. Manufacturing will flow to the country with lowest wages.
Services sector too is prey to be moved to countries with lower wages. We have seen migration of many service jobs to low wages countries where possible. Information Technology job profiles suit very well to get pulled off to lower wages countries. However many other services eg transportation can not be transferred to low wage countries.
A big plus point for service sector is that unlike manufacturing or mining, service sector generally does not have much relevance to the natural resources of the country. They are environment friendly unless you are in the power utility sector which is soon going over to alternative energy sources which are environment friendly.
Services sector involves lesser capital per head, what it means you can provide employment to more persons per dollar of investment when compared with manufacturing sector
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1 ANSWER

Sandeepan Bose, Armchair Economist
Answered Oct 27, 2016
You haven't mentioned the geographical context related with growth of services sector since 1960s. The growth in services sector is the ultimate objective for any economy in the world. Manufacturing seemed to be the rage in the 60s but it isn't so hot as Asian countries with low wages prove to be more profitable in this sector and will remain as long as there is a disparity in standards of living between countries. Manufacturing will flow to the country with lowest wages.
Services sector too is prey to be moved to countries with lower wages. We have seen migration of many service jobs to low wages countries where possible. Information Technology job profiles suit very well to get pulled off to lower wages countries. However many other services eg transportation can not be transferred to low wage countries.
A big plus point for service sector is that unlike manufacturing or mining, service sector generally does not have much relevance to the natural resources of the country. They are environment friendly unless you are in the power utility sector which is soon going over to alternative energy sources which are environment friendly.
Services sector involves lesser capital per head, what it means you can provide employment to more persons per dollar of investment when compared with manufacturing sector
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