The Service Sector in Lower-Income Asian Economies

25 Pages Posted: 10 May 2013

See all articles by Gemma Bolotaulo Estrada

Gemma Bolotaulo Estrada

Asian Development Bank - Economic Research

Yubraj Acharya

Asian Development Bank - Economic Research

Aaron Batten

Asian Development Bank - Economic Research

Peter Brimble

Asian Development Bank - Economic Research

Poullang Doung

Asian Development Bank - Economic Research

MIrzo Iskandar Gulamov

Asian Development Bank - Economic Research

Mohammad Zahid Hossain

Asian Development Bank - Economic Research

Dominic P. Mellor

Asian Development Bank - Economic Research

Donghyun Park

Asian Development Bank - Economic Research

Mohammad Shamsur Rahman

Military Institute of Science and Engineering(MIST) - Department of Computer Science and Engineering; Asian Development Bank - Economic Research

Date Written: April 2013

Abstract

In the past 10 years, the service sector has been a significant contributor to overall economic growth in Bangladesh, Cambodia, Nepal, Papua New Guinea, Uzbekistan, and Viet Nam. Sector growth has been supported by strong industrial growth in some while in others the critical factors have been liberalization, structural reforms, government support, and foreign investments. In order to increase the labor productivity of the sector and realize its potential to contribute to inclusive growth, these countries must address gaps in human capital and the higher costs of setting up new businesses and of doing business that stifle entrepreneurship and private enterprise. These impediments also stand in the way of developing the industry sector and of broader economic growth and development. Policy reforms that ease those impediments will help to achieve balanced growth in which the service and industry sectors support and reinforce each other. As services tend to be more labor intensive, they can foster inclusive growth by serving as an engine for creating jobs.

Keywords: services, structural change, growth, Asia

JEL Classification: L8, 014, 040

Suggested Citation

Estrada, Gemma Bolotaulo and Acharya, Yubraj and Batten, Aaron and Brimble, Peter and Doung, Poullang and Gulamov, MIrzo Iskandar and Hossain, Mohammad Zahid and Mellor, Dominic P. and Park, Donghyun and Rahman, Mohammad Shamsur, The Service Sector in Lower-Income Asian Economies (April 2013). Asian Development Bank Economics Working Paper Series No. 347, Available at SSRN: https://ssrn.com/abstract=2262577 or http://dx.doi.org/10.2139/ssrn.2262577

Gemma Bolotaulo Estrada (Contact Author)

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Yubraj Acharya

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Aaron Batten

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Peter Brimble

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Poullang Doung

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

MIrzo Iskandar Gulamov

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Mohammad Zahid Hossain

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Dominic P. Mellor

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Donghyun Park

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Mohammad Shamsur Rahman

Military Institute of Science and Engineering(MIST) - Department of Computer Science and Engineering ( email )

8th Floor, Tower Building-01
MIST, Mirpur Cantonment
Dhaka, 1230
Bangladesh

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

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