We estimate the People’s Republic of China’s (PRC’s potential growth rate in 2012 at 8.7% and at 9.2% for the average of 2008–2012, about the same as the average actual growth rate for this period. This rate is the natural growth rate, that is, the rate consistent with a constant...

This paper asks, first, whether today’s developing economies can achieve high-income status without first building large manufacturing sectors. We find that practically every economy that enjoys a high income today experienced a manufacturing employment share in excess of 18%–20% sometime...

The service sector is the largest and fastest growing sector in India and has the highest labor productivity, but employment has not kept pace with the share of the sector in gross domestic product and has not produced the number or quality of jobs needed. There is no policy leading to inclusive...

There is a widespread perception that the Republic of Korea’s service sector lags behind its dynamic world-class manufacturing sector. We empirically analyze the past performance of the Republic of Korea’s service sector in order to assess its prospects as an engine of growth. Our analysis...

Although Thailand’s service sector accounts for almost half of the national income and has a major stake in national employment, its contribution to the growth of the gross domestic product (GDP) fluctuates. Moreover, the share of the service sector in GDP is decreasing while many developed...

The development of the service sector in the People’s Republic of China has not kept pace with the country’s overall economic development. The share of employment in services is still lagging behind that of output and is also below the international norm. Moving from traditional services to...

The underdeveloped service sector in Asia has the potential to become a new engine of economic growth for developing Asia, which has traditionally relied on export-oriented manufacturing to power its growth. The central objective of this paper is to empirically analyze the prospects for the...

Some countries and regions have been more successful than others in developing information technology-business process outsourcing (IT-BPO) services industries. India and the Philippines in particular have offered educated human resources at low cost, attractive fiscal incentives, and industrial...

This paper analyzes the role of complexity in production on the level of output and on its rate of growth. We develop an endogenous growth model with human capital accumulation, where increased complexity could exert either a positive or a negative effect on the level of output but always a...

The Philippines is often referred to as a country from which export of services rather than manufactured goods is the principal engine for economic growth, as the share of the service sector in gross domestic product has exceeded that of the industry sector since the mid-1980s. Three major...