At Your Service? : The Promise of Services-Led Development.

Front Cover -- Contents -- Foreword -- Preface -- Acknowledgments -- About the Authors -- Abbreviations -- 1 Of Goods and Services: Inside the Black Box -- Introduction -- Services, Jobs, and Economic Transformation -- Scale, Innovation, Spillovers, and Job Creation: Revisiting the "Uniqueness" of Manufacturing -- The Services Sector Is Not Monolithic -- Implications for Inclusion in Lower-Income Countries -- Conclusion -- Annex 1A Classifications of Economic Activities in the Services Sector -- Annex 1B Adapting the McMillan-Rodrik Decomposition to Show Sectoral Reallocation -- Annex 1C Estimating Kaldor's Laws for the Industry Sector, 1995-2018 -- Notes -- References -- 2 Productivity and Jobs in Services: Mind the Gaps -- Introduction -- Services Firms and Their Productivity: Eight Stylized Facts -- Implications for Productivity Growth -- Implications for Job Creation -- Conclusion -- Annex 2A Data Sources -- Annex 2B Alternative Measures of Scale -- Notes -- References -- Spotlight: Bringing Services to the Surface: The Measurement Challenge -- Introduction -- Measuring Outputs -- Measuring Inputs -- Estimating Productivity -- Measuring Trade -- A Fading Border between Manufacturing and Services -- Measurement of Digital Services -- Data Coverage and Access -- The Way Forward -- Notes -- References -- 3 Will Technology Make the Twain Meet? A Changing Productivity-Jobs Dichotomy in Services -- Introduction -- Reduced Dependence on Physical Proximity -- Increased Role of Automation -- The Rise of Intangible Capital -- Implications for Productivity Growth and Job Creation -- Conclusion -- Notes -- References -- 4 Look Before You Leap: Services Before Manufacturing? -- Introduction -- Services and Value Chain Upgrading in Industrialized Countries -- Services Growth without a Manufacturing Core.

Growing Importance of Services to a Manufacturing Core -- The Role of Linkages in Expanding Inclusion -- Conclusion -- Notes -- References -- 5 Boosting Productivity to Keep Up the Good Work: Policy Imperatives -- Introduction -- The Policy Agenda: Trade, Technology, Training, and Targeting (the 4Ts) -- Where Countries Stand in the 4Ts Space -- Effects of Variations in Technology and Intersectoral Linkages' Trends across Subsectors on Prioritization in the 4Ts across Countries -- The Way Forward: How to Improve the 4Ts -- Conclusion -- Notes -- References -- 6 Conclusion: In the Service of Development? -- Introduction -- The Promise of Services-Led Development -- A Data Agenda for Services -- Appendix A. Summary Measures for Trade, Technology, Training, and Targeting (the 4Ts) -- Boxes -- Box 1.1 Trade in Services: A Tale of Four Modes -- Box 2.1 Informality in the Services Sector -- Box 2.2 COVID-19's Impact on the Services Sector -- Box 3.1 Technological Change and the Rising Demand for Services -- Box 3.2 AI, Jobs, and the Demand for Skills in India's ICT Services Sector -- Box 3.3 Impact of COVID-19 on Digitalization and Remote Delivery -- Box 4.1 The Philippines' Emergence in the Offshore Services Industry -- Box 4.2 Pakistan's ICT Services Boom -- Box 4.3 Geography, Transportation Services, and the Emergence of Logistics Hubs -- Box 5.1 Scaling Up Food Services Retail: The Role of Foreign Direct Investment -- Box 5.2 Beyond Border Restrictions: How Domestic Regulations Affect Potential for Competitiveness -- Box 5.3 India's Software Revolution and the 4Ts -- Figures -- Figure 1.1 Much of the Decline in Agriculture's Share of Employment and GDP in LMICs since the 1990s Has Been Offset by Services -- Figure 1.2 Consistently across Regions, Services Have Offset Much of Agriculture's Decline in Share of Employment and GDP in LMICs since the 1990s.

Figure 1.3 Labor Productivity in Services Has Increased Consistently in LMICs since the 1990s -- Figure 1.4 Labor Productivity Growth in Services Has Matched That in Manufacturing across LMICs in Many Regions since the 1990s, Typically Exceeding That of HICs -- Figure 1.5 Among LMICs in Most Regions, Services Have Contributed More Than Industry to Aggregate Labor Productivity Growth since the 1990s -- Figure 1.6 Services Subsectors Vary in Their Scope for Scale, Innovation, Spillovers, and Low-Skill Jobs -- Figure 1.7 The Most Prominent Mode of Exporting Services Is Establishing "Commercial Presence" Abroad, but "Cross-Border Supply" and "Consumption Abroad" Matter for Some Subsectors -- Figure 1.8 The Skill Intensity, Capital Intensity, Intersectoral Linkage Intensity, and Trade Intensity across Services Subsectors Has Not Changed Dramatically over Time -- Figure 1.9 The Export and Skill Intensity of Services Subsectors in HICs Are Higher Than in LMICs -- Figure 1.10 In LMICs, Commerce, Hospitality, and Transportation Services Rely More on Unskilled Labor, While Financial and Business Services Rely More on Skilled Labor -- Figure 1.11 Lower-Income Countries See More Employment in Low-Skill Services, While Higher-Income Countries See More in Global Innovator Services and Skill-Intensive Social Services -- Figure 1.12 The Inverse Relationship between Low-Skill Services and Per Capita Income Is Driven by Retail Trade -- Figure 1.13 Much of the Increase in the Services Sector's Share of Employment in LMICs since the 1990s Is Attributable to Low-Skill Services -- Figure 1.14 Low-Skill Services Are More Likely Than Global Innovator Services to Employ Informal Workers -- Figure 1.15 The Shares of Female Workers in Low-Skill Commerce and Hospitality Services-and in Global Innovator Services-Typically Exceed the Share in Manufacturing.

Figure 1.16 The Share of Firms with Majority Female Ownership Is Highest in Low-Skill Retail Services, Especially in the Informal Sector -- Figure 1.17 Labor Productivity Gaps between Lower- and High-Income Countries Tend to Be Wider among Low-Skill Personal, Commerce, and Hospitality Services Compared with Global Innovator Services and Manufacturing -- Figure 1.18 The Shares of Jobs and Wages in Business Services Exports Exceed Those in Manufactured Goods' Exports in Many Large LMICs -- Figure 2.1 Labor Productivity and TFP Vary across Services Subsectors, with Global Innovators Being the Most Productive -- Figure 2.2 Within Services Subsectors, Productivity Is More Varied across More Narrowly Defined Industries -- Figure 2.3 Industry and Firm Characteristics Explain about Half the Variation in Labor Productivity -- Figure 2.4 Services Firms Are Smaller Than Manufacturing Firms across All Income Groups -- Figure 2.5 Commerce and Business Establishments Are the Smallest, While the Average ICT and Manufacturing Establishments Are Close in Size -- Figure B2.1.1 Most Informal Enterprises Operate in Retail Services -- Figure B2.1.2 The Importance of Informality in Services Relative to Manufacturing Is Most Pronounced When Comparing Shares of Employment and Value Added -- Figure 2.6 When Data Are Restricted to Formal Firms, Services Firms Are Smaller Than Manufacturing Firms, on Average, in Both LMICs and HICs -- Figure 2.7 In Services, Smaller Firms Contribute More to Employment and Value Added Than in Manufacturing, but Large Services Firms Still Contribute Significantly -- Figure 2.8 Especially in HICs, Small Services Firms Are Just as Productive as Large Ones -- Figure 2.9 In HICs, the Productivity Benefit of Scaling Up Is Smaller in Services Than in Manufacturing, but in LMICs, Some Services Subsectors Benefit More Than Manufacturing.

Figure 2.10 With Few Exceptions, Services Rely Less Than Industry on Physical Capital -- Figure 2.11 Dispersion in Labor Productivity Is Higher in Services Than in Manufacturing -- Figure 2.12 Employment Growth during a Firm's Initial Years Tends to Be Lower in Services Than in Manufacturing -- Figure 2.13 Productivity Growth of Services Firms Is Similar to That of Manufacturing Firms -- Figure 2.14 Entry and Exit Play a Larger Role in Job Creation and Destruction in the Services Sector Than in Manufacturing -- Figure 2.15 Among Services Firms, Employment Changes Are Driven More by Entry and Exit Than by Firms' Growth -- Figure 2.16 In Industries with Lower Capital Intensity, Entry Plays a Larger Role in Job Creation -- Figure 2.17 Within-Firm, Between-Firm, and Entry and Exit Are Important Drivers of Productivity Growth in Both Services and Manufacturing -- Figure B2.2.1 Firm Surveys Show That Accommodation, Food Services, and Education Have Been the Hardest-Hit Sectors during the COVID-19 Pandemic -- Figure B2.2.2 Household Surveys Show That, on Average, 38 Percent of Services Workers Stopped Working in 2020 -- Figure 2.18 In Commerce-Related Services, US Firms Have More Establishments per Firm Than Brazilian Firms -- Figure 2.19 Services Are More Likely Than Manufacturers to Be Intensive in ICT Capital -- Figure 2.20 More Productive Services Rely More on Linkages with Other Firms -- Figure 2.21 In Low-Income Countries, Most of the Services Jobs Are in Lower-Productivity Subsectors -- Figure 2.22 Just As in Manufacturing, Firm-Level Productivity in Services Is Closely Related to Wages -- Figure 2.23 Commerce and Hospitality Workers in LMICs Are More Likely to Be in the Lowest Wage Quartile, While Half of Financial and Business Services Workers Are in the Highest Wage Quartile.

Figure 2.24 In LMICs, Job Quality Is the Highest in Public Administration, Utilities, and Financial and Business Services.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2023. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.