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 clipped from knowledgeintensiveservices.blogspot.comThe sectoral approach toward explaining development has enabled services (tertiary sector) to be disentangled from industry (secondary sector) and agriculture (primary sector) and introduced some distinguishing features of services such as intangibility, non-storability, non-tradability and low productivity of services. Gradually, with more diversified study of services coupled with technological advancement, the heterogeneity of services was acknowledged, allowing some services to be treated as storable, tradable and not necessarily consumed simultaneously with production. Research on services has traveled a long way, starting from a category of non-productive spending introduced by A. Smith over the bumpy road of three centuries of economic thought toward new concepts such as services science. From being treated as a residual in national accounts, services became the dominant category in most economies. |
