Trade in Services and the Doha Round

  • Dilip K Das


The services sector is the largest sector of the contemporary global economy, accounting for 60 per cent of total output, and it also accounts for a comparable share of employment, in some countries even a larger share. In the industrial economies services has been the single largest sector for a long time, and in the developing economies its share in total GDP has recorded considerable expansion in recent years. It has become the largest of the three economic sectors in many developing economies, making the maximum contribution to GDP and employment. As a rule of thumb, the services sector contributes 40 per cent to 60 per cent to the GDP in developing economies, and 60 per cent to 80 per cent in the industrial economies. As it is such a large sector, developing economies need to identify their comparative advantage in this sector as well as their export markets. They would logically have comparative advantage in one or more labour-intensive service industries. Many developing economies are known to have reasonably large reservoirs of semi-skilled and in some cases skilled labour forces, and consequently they may have comparative advantage in the labour-intensive industries that deploy their labour resources.


Foreign Direct Investment Service Sector World Trade Organization Industrial Economy Fourth Mode 
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© Dilip K. Das 2005

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  • Dilip K Das

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