as industry particularly manufacturing expands primary activity tends to become more efficient as a result of both increased demand and the provision of capital and intermediate goods in turn feeding industrial dynamism the service sector also expands to complement manufacturing activities and at higher levels of income comes to dominate the economy this was based on the belief that the resulting disruption would not only stimulate further private investment in the favoured sectors but would help promote various oiganizational and other capabilities whose shortage might otherwise curtail the growth process