ABSTRACT
This chapter provides statistical evidence for the development of service sectors in Europe and document changes in their structural configuration. It identifies the dynamic sections of service markets and provides a basis for the analysis of innovation in services. Structural change from an economy based on manufacturing to a service oriented economy is often taken as an indicator for modernization. The performance of transport and storage services depends on the overall level of economic activity as well as on the division of labour in national economies. Within the subsector financial institutions and insurance, financial services comprise two large groups, investment banking and retail banking. Some interesting results emerge from an analysis of total factor productivity in services. The statistical evidence strongly supports the general argument that these services are of eminent importance. Enthusiastic reports on the modernization and job creation potential of services were soon accompanied by more sober analyses of de-industrialization processes.
