ABSTRACT
Asia-Pacific economies vary in terms of the role of large industrial conglomerates. To understand the developmental role of business services in the Asia-Pacific region, it is helpful first to understand the role of producer services in general. The development of business services1 over the past decade has been an important source of economic growth around the world. At a time when manufacturing has slowed and automation has resulted in a decline of jobs in goods production, the increased value-added possible from business services make them attractive for economic development. Business services play several key roles in an economy. Where business services are not available, expertise must be hired in-house, and firms are dependent on internal staff who, by the very nature of their responsibilities, are likely to be generalists. In addition to their impact within domestic economies, business services are internationally tradable.
