Rebalancing Growth in PRC: Services Sector Development
Publication | June 2009
- The services sector is widely recognized as a major source of growth. It plays a significant role in improving production efficiency, and promoting technical progress and innovation. Moreover, the carbon footprint of services production is generally much smaller than that of manufactures.
- While manufacturing will remain a significant sector in the People's Republic of China (PRC) in the coming years, services, through adequate policy changes, has the potential to turn into an important source of growth addressing unemployment pressures, increasing living standards and sustaining long-term economic growth.
- Several policy recommendations are proposed to facilitate the transition to a more servicesoriented growth model. These include improving the regulatory framework, streamlining production incentives, further liberalizing the financial sector, reforming the labor market, undertaking largescale investments in education and skills development, and enhancing intellectual property rights protection.