The ASEAN Services Sector and the Growth Rebalancing Model

46 Pages Posted: 17 Sep 2010  

Rafaelita M. Aldaba

Philippine Institute for Development Studies

Gloria O. Pasadilla

ADBI

Date Written: September 7, 2010

Abstract

The growth rebalancing model, which places the nontradable services sector on center stage, is important to spur on faster growth in this sector and tap its potential to become another engine of growth for ASEAN economies. While ASEAN countries have allocated the bulk of their fiscal stimulus packages to infrastructure spending, the present levels are nevertheless considered insufficient to create a large impact on growth. By focusing on the provision of infrastructure and social services like power, ports, roads, and mass transit, along with health and education, governments can address the large investment backlogs in these sectors. Except for Singapore, ASEAN countries remain protective of their services sectors. To encourage and renew private sector interest in infrastructure investment in the region, governments have an important role to play in creating an enabling environment, particularly in maintaining an efficient and competitive services sector.

The growth rebalancing model’s emphasis on environmental protection, low carbon growth, and green strategies places the spotlight on new areas of services investment where ASEAN countries could develop market niches. Thus, ASEAN governments should pursue policies that support these new growth areas by encouraging research and development, strengthening mechanisms for the transfer of green technology, and promoting greater private sector participation.

Keywords: growth rebalancing model, asean services sector, governmental policies

JEL Classification: L91, L8, F4

Suggested Citation

Aldaba, Rafaelita M. and Pasadilla, Gloria O., The ASEAN Services Sector and the Growth Rebalancing Model (September 7, 2010). ADBI Working Paper No. 246. Available at SSRN: https://ssrn.com/abstract=1678425 or http://dx.doi.org/10.2139/ssrn.1678425

Rafaelita M. Aldaba (Contact Author)

Philippine Institute for Development Studies ( email )

NEDA sa Makati Bldg.
106 Amorsolo St., Legaspi Village
Manilla, NCR 1229
Philippines

Gloria O. Pasadilla

ADBI

Kasumigaseki Building 8F 3-2-5
Kasumigaseki, Chiyoda-ku
Tokyo, 100-6008
Japan

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