First, the rise of per capita income tends to shift the demand from goods to services. The phenomenon in which an economic development accompanies an increase in the GDP share of the service sector is known as Petty-Clark's law. Further, the saving rate in many Asian countries is high because of insufficient social security and other factors.
If improving social security induces a decline in the savings rate and an increase in consumption, demand for services may expand significantly. Second, the service sector plays an important role in the production of higher value-added export goods through making the GVCs more sophisticated.