Asian Service Industry

Comparative Chart ASIAN Countries

*MM - Millions
*bn - Billions
Source: Wikipedia, NDTV, Indexmundi.com

Overview

Service Industries in Asia are a feature of modern, rich economies. High levels of professional skill and research and innovative capability, and the educational and commercial infrastructure that underpin them, make the difference between middle-income and really high-income economies.

Service trade is also the most rapidly growing component of international trade, connecting trade in goods to international investment flows in highly sophisticated networks of value chains in the most dynamic parts of the international economy.

A wide, simple and far-reaching generalisation in this field is to the effect that, as time goes on and communities become more economically advanced, the numbers engaged in agriculture tend to decline relative to the numbers in manufacture, which in their turn decline relative to the numbers engaged in services.

Services are a key input of nearly every economic activity, they point out. They are also an important determinant of productivity growth. But they cite work by the Asian Development Bank that shows that large differences have emerged among low-income countries in the Asia Pacific region in their ability to use their service industries to create employment, boost productivity and lift per capita incomes.

An underperforming service sector is a drag on economic development and efficiency right across the economy. Batten and Mellor identify Vietnam and Papua New Guinea (PNG) as two developing countries in the region whose service sectors are, for somewhat different reasons, seriously underperforming. They are not alone in this problem.