The contribution of service industries to national and regional economic development is subject to increasing debate. For centuries, manufacturing has been seen as the catalyst for growth and services as subordinate because material goods are more easily traded than services most of which are for local consumption. It has also been simpler to raise productivity in manufacturing, and exports of goods generate larger multiplier effects However, the spread of digital technologies and the falling cost of air travel mean that service industries have become less dependent on local demand and more able to access external markets.
Human Sciences Research Council (Sat,) studied this question.