Abstract
This paper examines and analyses the TFPG performance of individual service industries in Singapore. TFPG of services were highly cyclical, indicating the overwhelming vagaries of external demand in this small and open economy. Although the TFPG of most services were dismal during 1976‐93, the rates were higher for the post‐1985 recession period, compared with those in the pre‐1985 recession years. This trend reflects the Government’s concerted efforts to upgrade the workforce and promote higher technology services. Besides, the service industries which did not conform to this trend had in common massive infrastructural investments which were primarily undertaken by government‐linked enterprises with a longer‐term interest of the economy at large. Thus it seems that the paternal role of government has a vital influence on Singapore’s TFPG performance. The study implies that the role of government could constitute an important factor in the estimation of TFPG, and in comparing TFPG among economies where government roles differ significantly.