Will Services be the New Engine of Economic Growth in Bangladesh?

Abstract

At present, development of a vibrant and competitive services sector is a key characteristic of modern economies in the world. In the developing world, services frequently account for two-thirds or three-quarters of all economic activity. The transition from agriculture through manufacturing to a service based economy has been the hallmark of economic development for many countries at present. In line with this trend, many emerging markets currently working hard to support and develop services industries and to put in place the regulatory structures required for more integrated international services markets. At present, the economy of Bangladesh is dominated by the services industry which contributes a significant portion to the Gross Domestic Product (GDP). This study focuses on sectoral contribution of services sector to the economy in comparison to other sectors and recognizes the services sector as a new engine of economic growth and development of Bangladesh economy. 300 services beneficiaries and 60 officials from different services firms have been exposed to collect the data regarding the services sector. It has been found that the economy of Bangladesh is shifting towards the services economy. Most of the investors are investing in services sector to generate more profit. So, it is essential to examine the role of services sector in Bangladesh Economy.