Sectoral Analysis III: Services (Tertiary) Sector

According to the WTO (World Trade Organization), the twelve primary services in the services sector are business services, communication services, construction and related engineering services, distribution services, educational services, environmental services, financial services, health-related and social services, tourism and travel-related services, recreational, cultural and sporting services, transport services, and other services not included elsewhere.

Services like tourism, travel, recreational, or cultural services cannot be transported because they are bound to the place where the facilities are.

The quaternary sector model divides the economy into four: the primary sector (the extraction of raw materials), manufacturing, tertiary (services), knowledge-related activities.

When the country becomes a developed country, the main contributor to the GDP becomes the tertiary sector.

“Exogenous Demand Shock Hypothesis” states that there is a change in an exogenous variable, which causes an increase in the total demand for services. For example, the rise in female participation in economic activities; especially the period after World War II.

Engel’s Law states that income elasticity of demand for foods is between 0 and 1, and income elasticity of demand for services is greater than 1.

The exports of travel sector is the highest in Turkey with about 25 billion US dollars in 2018.

The technical testing market includes services such as technical inspection, automotive testing, composition, and purity testing.

Information technology services sector is the smallest sector in information technology sector with respect to turnover.

The Law No. 4691 is the law on technology development zones in Turkey enacted in 2001.

The institutions of the Ministry of Industry and Technology supporting R&D activities in Turkey are The Scientific and Technological Research Council of Turkey (TÜBİTAK), Small and Medium Industry Development Organization (KOSGEB), and Development Agencies.

Foreigners buying houses the most in Turkey are Iraq citizens.

A foreigner making an investment of 250 thousand US dollars on real estate gets the right to apply for Turkish citizenship.

The Universal Postal Association (UPU) was established in 1874 by 22 countries, including Turkey.

The services provided by communication services sector are postal services, the telecommunication services, and construction services.

The franchising is a set of long-term and continuous business relationships that arise from a franchise of a product or service that the franchisor grants to the second party to carry out commercial business by providing information and support on the management and organization of the business within a specified period.

The Council of Higher Education was established in 1981 to plan, coordinate, and management of public higher education institutions in Turkey.

International patients prefer Turkey because of quality technological infrastructure and cheaper treatment.  

According to UNWTO in. 2016, Turkey was the 10th most popular tourist destination in the world.

The main feature of a quaternary economy is that the most contribution to GDP is provided by knowledge-based services.