This argument therefore rests on the assumption of a relationship between income and spending patterns on goods and services. Companies and other organizations increasingly rely on the services of specialists because of the complexity of economic organization and to obtain the economies involved in the division of labour: technological and competitive pressures require the use of services to keep up-to-date in a constantly changing environment; organizations are able to retain their flexibility by hiring in services which provide use without ownership; time pressures and lack of available internal resources encourage organizations to use outside services rather than having services provided internally. 0000050750 00000 n 0000009005 00000 n 0000024540 00000 n

@ f)q Thus, Service economy is growing. 0000002789 00000 n (c) A difference in the physical capital per worker available in industry compared with service. A number of reasons why this was so, included: (a) A greater decline in hours worked per man in service than in industry. This study empirically examines the possible factors that determine the services sector growth, both in selected developed and developing economies.

Currently, the following editors work regularly on the PDR: Dr Rashid Amjad Chaudhry (Editor) and Professor Aurangzeb A. Hashmi (Literary Editor). 0000008716 00000 n endstream endobj 14 0 obj <>>> endobj 15 0 obj <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/TrimBox[0.0 0.0 515.906 756.85]/Type/Page>> endobj 16 0 obj <> endobj 17 0 obj <> endobj 18 0 obj <> endobj 19 0 obj <> endobj 20 0 obj [/ICCBased 39 0 R] endobj 21 0 obj <> endobj 22 0 obj <> endobj 23 0 obj <> endobj 24 0 obj <> endobj 25 0 obj <> endobj 26 0 obj <>stream 0000026732 00000 n

0000013110 00000 n startxref hb```g``] @@#Hr\K*K^ More leisure time - demand for recreation and entertainment facilities, travel resorts, adult education and self-improvement courses. 0000003218 00000 n The net effect is to increase competition and to encourage the transfer of innovation in both products and processes from country to country. 2018 Pakistan Institute of Development Economics, Islamabad 0000001810 00000 n However, the entire sector has not grown. H\0] JBv"AIO]_TkfzosE&)R,N^VOzms'7sk1yM|^>DWqELsiu7qX,ftYo;oicg?Kx6SM2?4gy) . do not find any change in their life. The weakness with these suggestions is the problem of measuring output changes in services. (iii) As income levels rise, certain sections of people start demanding many more services, such as eating out, tourism, shopping, private hospitals; private schools, professional training etc.

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trailer Prokaryotic GrowthI. (ii) The development of agriculture and industry leads to the development of services such as trade, transport, storage etc. https://edurev.in/studytube/video-sectors-of-indian-economy/5cad134f-a06e-4d51-ab8b-1d130803e49e_v. 0000033572 00000 n 0000009984 00000 n 0000061527 00000 n It is Govt. Greater concern about ecology and resource scarcity made people think in terms of leased services, car rental, travel, resort to time sharing rather than ownership basis. 0000000016 00000 n Large numbers of people engaged as construction workers, maid, peons, small shopkeepers etc. Privacy Policy, to remove long-standing bars on adv and promotional activities. 0000030124 00000 n 0000007933 00000 n Main reasons behind the growth of services include rapid urbanization, the expansion of the public sector and increased demand for intermediate and final consumer services. Plagiarism Prevention 4.

They actively participate in refereeing the papers Publications and Research Information submitted to the Review for publication; they also render valuable advice on other related matters. (i) In a developing country, the government has to take the responsibility for the provision of basic services for example, hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies etc. 0000003397 00000 n 0000004472 00000 n 161 29 Last modified: Saturday, 17 December 2011, 8:03 AM. Another important action taken by the Govt.s Privatization means the policy of transformcompanies. 5. 0000024872 00000 n

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Services formerly provided unpaid by household members are now provided by institutions recognized in official statistics. which makes mandatory for price levels, distribution strategies, defining procedure attributes. 0000004050 00000 n 0000015501 00000 n

engineering services, personal services). As a national economy develops, the relative share of employment between agriculture, industry (including manufacturing and mining).The service economy in developing countries like India is mostly concentrated in. The size of the service sector is increasing in virtually all countries around the world. New change will require services firm to change their marketing strategy, operational procedures, and HR policies. 0000006176 00000 n 0000024094 00000 n

0000010667 00000 n Over the past 50 years PIDE has earned an international reputation and recognition for its research. (d) More rapid technological change in industry than in service; and that industry benefited more from scale economies. 0000020077 00000 n For example, part of the increase in employment in services is due to the transfer of certain kinds of households jobs (not shown in conventional employment or output measures) into the officially paid and recorded workforce (e.g. 0000000876 00000 n This change was quite sharp in cities, especially in big cities. As a national economy develops, the relative share of employment between agriculture, industry (including manufacturing and mining).The service economy in developing countries like India is mostly concentrated infinancial services, health,andeducation. 0000004015 00000 n Many professional associations have been forced by Govt. 0000004386 00000 n do not find any change in their life. The journal is issued quarterly and, with a fair mix of topics, regularly contains original (theoretical and empirical) contributions to Economics, in general, and on Pakistans socio-economic problems, in particular. Nearly every issue carries contributions by scholars from Pakistan and overseas.

0000001570 00000 n Cellular growth: Short & Long Answer Questions for Class 10, Information & Computer Technology (Class 10) - Notes & Video, Social Science Class 10 - Model Test Papers, Social Science Class 10 - Model Test Papers in Hindi, English Grammar (Communicative) Interact In English Class 10, Class 10 Biology Solutions By Lakhmir Singh & Manjit Kaur, Class 10 Physics Solutions By Lakhmir Singh & Manjit Kaur, Class 10 Chemistry Solutions By Lakhmir Singh & Manjit Kaur, Class 10 Physics, Chemistry & Biology Tips & Tricks. FACTORS CONTRIBUTING

What is growth?A. The growth of service industries can be traced to the economic development of society and the socio-cultural changes that have accompanied it. Some of the major reasons for the growth of service economy are as follows: (a) The Lag in Growth in Labour Productivity in Services (b) The Growth in Intermediate Demand from Firms (c) The Growth in Final Demand from Consumers. %%EOF Explain any five reason for the growth of service sector in India? In emerging economies, the service output is growing rapidly and often represents at least half of the GDP. HSA0+@wUf,>! 0000002232 00000 n Archaeological remains discovered in this area show that it has been a center of civilization for some 5,000 years. 0 ut . 0000005669 00000 n The creation of wireless networks and transfer of electronic equipments such as cell phones to lap tops and scanners, to allow sales and customer service personnel to keep in touch. The Institute, neighbor to several other academic outfits situated in this historic and scenic part of the green foothills of the great South Asian mountain ranges, is the hub of economic and social science research in this part of the world. Access to efficient services has become crucial for the productivity and competitiveness of the entire economy. Meaning of service economy: 4 $"\BCa,bF(54bX UlnHfi+ -`m~U,3Xz054b>iA#OK._gw6daa>ChK@fF)=Xz[> i2Kj(109,5 jK (X8( (v) Privatisation: Government policy of privatisation has also led to growth of this sector. 0000026052 00000 n However, the productivity gap is the only factor that does not have any significant impact on services sector growth, both in developed and developing economies, which indicates that the Baumol's cost disease has been cured. The Pakistan Institute of Development Economics was established at Karachi in 1957 and in 1964 accorded the status of an autonomous research organization by the Government of Pakistan. To access this article, please, Pakistan Institute of Development Economics, Islamabad, Access everything in the JPASS collection, Download up to 10 article PDFs to save and keep, Download up to 120 article PDFs to save and keep. This item is part of a JSTOR Collection. Consumers spend increases in income on travel, recreation, education, health care and similar services rather than on cars and clothing. In emerging economies, the service output is growing rapidly and often represents at least half of the GDP. xb```;L cc`a$/TDedt%IYJ//q[|u2)KjV=v 7`s6[J+K18|!6=dfh];NVVzU\z74u:dZE@gB/=[-zNGqa`(WGJ}mZF)EVWa>(\Mdi?SoRKME .ll}cccHLp 0000027461 00000 n HUK1)FJl=# %{x`*tJo5IV~DF*dnd I1n8(d30OBXnW ?n$lT-5=$_@Nd2hKVx%[/R&qJ)9(HIR} As advanced economies have developed so too have markets for service provision. 0000012123 00000 n (vii) However, the entire sector has not grown. 0000005036 00000 n 163 0 obj<>stream data processing). Large numbers of people engaged as construction workers, maid, peons, small shopkeepers etc. In addition to providing a firm academic basis to economic policy-making, its research also provides a window through which the outside world can view the nature and direction of economic research in Pakistan. 0000009892 00000 n <]/Prev 68075>> 0000007427 00000 n 0000029715 00000 n As society gets wealthier and as the marginal utility derived from additional increments of goods declines, then people turn to services expenditures. The size of the service sector is increasing in virtually all countries around the world. This change was quite sharp in cities, especially in big cities. The Reviews Editorial Board consists of thirty-six outstanding scholars in the field of Economics and various social science fields. 0000031315 00000 n Greater the development of the primary and secondary sectors, more would be the demand for such services. (iv) Over the past decade or so, certain new services, such as those based on information and communication technology have become important and essential. 0000013825 00000 n 0000004736 00000 n More powerful software enables firm to create databases that combine information about customers with details of all their transaction, so that they can be used to predict new trends, segment the market, new marketing opportunities. %PDF-1.5 % 0000004206 00000 n Technological developments mean more goods-which require specialist service in fields like motor cars, stereophonic equipment, video equipment and home computers. Combinations of changing life styles like. (vi) A large number of workers are engaged in services, such as small shopkeepers, repair persons, transport persons etc. |ofYp|8`?0BnFIP}:thTI?w]_B =&d?wp+g&z *O(paiDaPM.g0l= Another part of the explanation for the growth of services is attributed to the growth of intermediate demand from firms (i.e. 0000002174 00000 n (iii)Rise in Income Levels: As income levels rise, certain sections of people start demanding many more services, such as eating out, tourism, shopping, private hospitals; private schools, professional training etc. TO THE GROWTH OF SERVICE SECTOR. 0000023343 00000 n 0000032895 00000 n Xt)Z$`8x;0501c"pC!Sl.9;t@]& {BCCKe^~^!bF7v +Vr00y94#o0 . providing inputs to manufacturing and other sectors of the economy). 0000001682 00000 n %%EOF 0000027065 00000 n Lower output per man in services was the major explanation for the shift in employment into the service sector. (b) A more rapid increase in the quality of labour in industry than in service. 13 52 0000001336 00000 n Content Filtrations 6. Study Material, Lecturing Notes, Assignment, Reference, Wiki description explanation, brief detail, Business Science : Services Marketing : Introduction : Factors Contributing to The Growth of Service Sector |, Factors Contributing to The Growth of Service Sector. The transformation of such operations like telecoms, airlines has led to restructuring cost cutting and more market focused. Terms and Conditions, 0000006659 00000 n due to the affluence. Increase in the number of new products sparked development of such service industries as programming, repair and time sharing. Thus, Service economy is growing. It is devoted to theoretical and empirical research in Development Economics in general and on Pakistan-related economic issues in particular. 0000023412 00000 n endstream endobj 173 0 obj<>stream 161 0 obj <> endobj startxref 0000035395 00000 n 0000000016 00000 n Developed by Therithal info, Chennai. <<28ef8879b93ba746b688e323709e1552>]>> INTERNATIONALISATION AND GLOBALIZATION: A strategy of international expansion may be driven by a sector for new markets or by the need to respond to existing customers who are traveling abroad in greater numbers. Changes come from the integration of computers and tele-communication. welfare services). 0000001735 00000 n

In emerging economies, the service output is growing rapidly and often represents at least half of the GDP. Redesigned and re-planned twice in the last two decade, the contents have tended to emphasise theoretical-cum-empirical contributions; the underlying commitment has been to strengthen the interest in the general areas of Economics and other social science fields. Licensing of independent entrepreneurs to produce and sell a branded service according to tightly specified procedures. 0000030512 00000 n 0000012852 00000 n wnc[p#j'zE3T|\;v/7p428dDM. 0000001619 00000 n Now a day there is a drastic change, two members are working, which requires to hire individuals to perform tasks that used to be performed by a house hold member. Service Sector/ Tertiary Sector in India has been growing rapidly for a number of reasons :(i) Responsibility of Government:In a developing country, the government has to take the responsibility for the provision of basic services for example, hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies etc. 0000001853 00000 n 0000009146 00000 n Privacy Policy 8. 0000003612 00000 n ;[ :.3l[Z}^v/2g\4Rvf^a~G(Os/neYJWIZlGXHg#}#39}o4|?pOLJ>jc HLwBu./9@L]%,aYA Ij}0NDB !-D\`*RN}1;Ea2%^Mfs2)&Zz\;[wAeE&_Noy}5GeCrE!gad_XvEt03}W\%'jv.W Dd^FX5`Lj,M>CPFn/ 7 Another part of the explanation for the growth of service is attributed to the growth of final demand from consumers. j#f)7(#O&Wz8a+H.Y Large numbers of people engaged as construction workers, maid, peons, small shopkeepers etc. A summary of some of the reasons for the growth of consumer service industries is given in Table 1.1. Other elements of the growth of final demand from consumers include changed life-styles, more leisure time, longer life expectancy and the increasing complexity of life. Business buyers have always used an array of services like accounting, construction, banking, insurance, legal, research, advertising, public relations, training, transport, and shipping and consultancy services.

Franchising has become wider spread in many service industries. Specialist firms have been set up to provide services previously carried out by existing firms (e.g.