How does service sector help in the economic development of a country ? Explain with example.
Answers
I would like to give a non-bookish answer to the query before me.
So, tertiary sector means basically service sector and when this sector does well then it produces an efficient logistical bridge between the primary and the secondary sector.
Services sector involves transport, distribution and sale of goods from producer to a consumer, as may happen in wholesaling and retailing. The goods may be transformed in the process of providing the service, as happens in the farm to platter chain.
All these produces an efficient value proposition for primary and secondary sector.
Apart from this the growth of tertiary sector also is good for the government coffers. As this sector adds onto the financial strength of the government in the means of increase tax collection for the State. With increase financial-muscle the government is in a better condition to make capital investment for infrastructural and other development in the country. It also adds onto the employment generation capacity of the economy.
Tertiary sector also produces maximum number of employment with the per capita investment when compared to the primary and the tertiary sector. This feature of tertiary sector is like an ‘anchor’ to the overall economy and the socio-economic dimension of that nation.
Not to forget, as an economy matures it moves from the primary sector to secondary and then to tertiary sector. Now, there is another sector after tertiary relating to information and that is called quarternary sector.
In economy everything is related and value addition at one place always shows into the whole economy and thus into the other areas of economy as well.
Thus, tertiary sector is certainly important for the development of other sectors in an economy.
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