Foreign Trade and the Growth of the Service Economy

摘要

The study analyzed the major factors which have contributed to the growth of employment in the service sector of the U.S. economy. For the purpose of the study, particular emphasis was placed upon the influence of foreign trade and investment and labor demand on the rate of growth in the service sector. The authors found that the primary factor contributing to employment growth in services has been the dramatic increase in government expenditures, particularly at the state and local level. The authors also found that while the growth of the service sector had few direct consequences for international trade, it did lead to increased exports in areas such as financial services and higher education.