Services and sustainable development : a conceptual approach

Abstract

For the vast majority of countries, regardless of developmental status, services make a critical contribution to Gross Domestic Product (GDP), are an important source of employment, and serve as vital inputs into production processes. Services are crucial for the development of economies and provide a significant contribution towards the achievement of the Sustainable Development Goals (SDGs) identified in the United Nation’s 2030 Agenda (UN 2015). The nature of the relationship between services and the attainment of sustainable and inclusive economic growth is complex and multifaceted. Services can drive sustainable development outcomes through both growth and non-growth channels. The growth channel includes impacts from domestic production and services trade performance as both affect the productivity and efficiency of the domestic economy. In contrast to the relationship between economic growth and services, which has been well documented in numerous studies, less research has been devoted to the non-growth dimensions of services.