After years of neglect and undue regulatory constraints, local service productivity in most emerging economies lags far behind productivity in sectors developed for export. This is a pity.
MGI research suggests that, given the right competitive environment, local services can be a powerful source of wealth creation and jobs for middle-income economies – more powerful than offshore services could ever be.
MGI debunks a number of myths associated with local services and offers three ways for governments to harness their power:
- recalibrate regulations across the economy
- make them less burdensome
- enforce them fairly and firmly in every sector