This article1 examines the nature and the evolution of a symbiotic relationship between manufacturing and services, using input-output tables for selected Pacific Basin countries in two different years, 1975 and 1985. Empirical results seem to suggest, inter alia, that although the service sector bears the brunt of employment generation, its capability to generate and sustain a high level of employment critically hinges upon its vital linkages with the manufacturing sector. Among service inputs to manufacturing, the parallel development of producer services becomes essential to increasing the productivity and competitiveness of the manufacturing sector.