An Analysis of the Interdependence between Service and Goods-Producing Sectors

There are two opposing views regarding the relationship between the goods-producing sector and the service sector, and this divergence of views has some relevance in light of the recent growth of service sectors in some advanced economies. Under the orthodox view, service activities are secondary to goods-producing activities; the income of the former is seen as derived from the income of the latter, i.e., a “redistribution of income” originated with goods-producing activities.