Given that the service sector is increasingly internationalized and tradable, penetration into other countries could happen relatively rapidly. D.  The case of China: rising income and growing consumption market  China has developed its economy as a center for industrial production in the Asian region by utilizing its large pool of low-cost labor from rural areas.
Thus, wage growth has long lagged labor productivity growth. The resultant low unit cost of labor appears to have contributed to household consumption growth lagging GDP growth (Chart 14). In recent years, the supply  8  See Estrada, Gemma, Donghyun Park, and Arief Ramayandi, “Population Aging and Aggregate Consumption in Developing Asia,” ADB Economics Working Paper Series No. 282, 2011.