This article suggests that the linkage between industrial modernization and significant service sector employment gains has not been adequately considered and that such consideration might lead to a re-evaluation of the labour absorption argument which calls for more 'appropriate' technologies with higher labour intensity. This paper reviews the literature on labour absorption and appropriate technology. It then examines the experience of the service sector in both DCs and LDCs. The key relationships between the service sector and the economy are then developed, leading up to possible implications for LDC growth strategies.
ASJC Scopus subject areas
- Geography, Planning and Development
- Sociology and Political Science
- Economics and Econometrics