The government should ease the nation's service sector to allow it to create a larger number of jobs and build strong international competitiveness, a researcher has suggested.
Although the domestic service sector has contributed a great deal to the economy, it has failed to help increase employment and become international to create greater added value, Wang Chien-chuan (
Last year, the service sector's production value accounted for more than 70 percent of the nation's GDP -- a ratio comparable to those in developed nations, Wang noted.
But Taiwan's per capita income has hovered between US$14,000 and US$15,000 in recent years, indicating that the service sector has not helped the nation as a whole become wealthier, he pointed out, attributing the phenomenon to the sector's lack of globalization and its inefficiency in bolstering exports.
The service sector only generated 6.4 percent of the country's total research and development, a figure which Wang said indicates that the sector is incapable of creating additional added value by upgrading or innovating, leaving it lacking a competitive edge in the world market.