Decomposition of Economic Growth in Sri Lanka: Deep Look into the Service Sector
Keywords:Service Sector, Decomposition, Economic Growth
The service sector gives the highest contribution to the economic growth of the country and it is about more than 50. Therefore service sector give the highest contribution for the economic growth in Srilanka. Through this research the service sector is decomposed. This empirical study was to measuring the contribution for the economic growth in Sri Lanka by service sector. Time series data is used to identify the decomposition of economic growth in Sri Lanka by Service. Annually data is collected from 2006 to 2014. This study mainly focused on growth decomposition methodology developed by Ivanov and Webster and this methodology used to decompose economic growth in Sri Lanka by service sector. This model presents an approach that is general and it can be applied to other countries. The methodology identifies the direct impacts of specific service sector components on the per capita growth of real gross domestic product. The study found that each service sector components in this analysis has a very different contribution to the growth rate in the economy. The research findings would provide guidance to the policy makers to develop policies, procedures, programs and standards.