1.5.4 Services: A growth sector
Services have added a third component to many economies that now consist of the primary (agriculture), secondary (manufacturing or industrial), and service sector (also referred to as the tertiary sector).
The growth and magnitude of the service sector is widely recognised and often portrayed dynamically. Table 1.1 provides examples of the recognition of services in the literature with the general theme being that services have become the major growth area of world trade.
The services sector is the largest of the sectors in advanced economies in terms of contribution to gross domestic product (GDP). In Australia for example, the services sector accounts for 80.4 per cent of employment (Kotler et al. 2004).
Table 1.1 Recognition of services growth
Author |
Comment |
Lovelock (1991, p. 1) |
'a period of almost revolutionary proportions' |
Roberts (1994, p. 18) |
'a key driver for export and economic growth' |
Boone and Kurtz (1995, p. 445) |
'among the most significant economic trends in the post-World War II economy' |
Khayum (1995, p. 1) |
'one of the most notable empirical trends of this century' |
Mercer (1996, p. 7) |
'the fastest growing area of world trade' |
Brown (1997, p. 1) |
'new engine of growth' |
Department of Foreign Affairs and Trade (1997, p. 8) |
'services have become a major growth area in international trade' |
The service sector, of which the maritime industry is included, is still growing. Turn now to your text reading that highlights the importance and growth of services to Australia 's economy.
In your text
Kotler et al. (2004) Chapter 11, pp. 396-397, 'Services classifications'.
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