Rapid Service Sector Growth Fuels Balanced Economic Expansion Across Asia
The study looked at how faster productivity growth in the service sector in Asia affects the overall economy. By using a complex model that considers different industries and economies, the researchers found that when the service sector grows more productive, it benefits all sectors in the long run. This helps Asian economies grow steadily and evenly. The adjustment process varies depending on the type of industry, how much capital is needed, and how open the sector is to international trade. One interesting finding is that when service sector productivity increases, there is a big expansion in the durable manufacturing sector to support the overall economic growth.