WORKING PAPER 12-20

Performance of the Services Sector in Korea: An Empirical Investigation

by Donghyun Park, Asian Development Bank
and Kwanho Shin, Korea University

October 2012

There is a widespread perception that Korea's services sector lags behind its dynamic world-class manufacturing sector. This paper empirically analyzes the past performance of Korea's services sector in order to assess its prospects as an engine of growth. The analysis resoundingly confirms the conventional wisdom of an underperforming service sector. In light of Korea's high income and development level, the poor performance of modern services is of particular concern. The authors identify a number of factors underlying the poor performance and set forth policy recommendations for addressing them. Overall, Korea faces a challenging but navigable road ahead in developing a high value-added services sector.

View full document [pdf]


RELATED LINKS

Book: Global Trade in Services: Fear, Facts, and Offshoring September 2011

Policy Brief 12-10: Framework for the International Services Agreement April 2012

Policy Brief 08-1: "Fear" and Offshoring: The Scope and Potential Impact of Imports and Exports of Services January 2008

Book: Accelerating the Globalization of America: The Role for Information Technology June 2006

Working Paper 05-9: Tradable Services: Understanding the Scope and Impact of Services Outsourcing September 2005

Paper: This is Bangalore Calling: Hang Up or Speed Dial? What Technology-Enable International Trade in Services Means for the US Economy January 15, 2005

Paper: Outsourcing--Stains on the White Collar? February 2004

Policy Brief 03-11: Globalization of IT Services and White Collar Jobs: The Next Wave of Productivity Growth December 2003



© 2014 Peter G. Peterson Institute for International Economics. 1750 Massachusetts Avenue, NW.
Washington, DC 20036. Tel: 202-328-9000 Fax: 202-659-3225 / 202-328-5432
Site development and hosting by Digital Division