Improvements in technology are making it increasingly easy to trade services. This has led some commentators to argue that services can become a more viable driver of EM growth, allowing EMs to break from the old path of industrialisation that was followed by the most successful developers of previous decades. But we are sceptical that the “services revolution” will be a game changer. There are other reasons, besides tradability, why EMs have fared best by first developing their manufacturing sectors.
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