Question

Explain why the development of service industry is later than that of agriculture and manufacturing based on Roadmap theory for service industry.

Subject Name: international service trade

Answer 1

The roadmap theory of service industry explains the plan or steps involved in the progress in the process of development of an Economy. Every economy has three main sectors- agriculture sector, manufacturing sector or secondary sector and service sector. With growth and development of an economy there is change in proportion and interrelation among it's basic sectors.

In every economy the Agriculture sector is the primary and most important sector but with growth of Economy there is rise in income as well as rise in per capital income, hence, the prominence of agriculture sector declines, and there is rise in industrial sector. With the passage of time the main products of agriculture reaches it's saturation limit and the demand for industrial products rises , as income of people rises. As a result the industrial sector share in GDP rises.

Later , in post industrialised period, as income continues to rise , people demand for services like Education service, health services etc. rises. Therefore services becomes expensive increasing the importance of service sector. As a result people shift to service Industry.

Another reason of rise in service sector is Technological advancement and progress or mechanisation of service sector which increases the employment in service sector, while employment in agriculture and industrial sector falls . Also with increase in mobility of labour there is increase in migration of labour from one place to another.for employment causing increase in international service trade. Later service sector contribute highest in service sector.

Therefore service sector develop later than that of agriculture and industrial sector.