Check out Setting Up Google Play Services which says:
To develop an app using the Google Play services APIs, you need to set up your project with the Google Play services SDK.
If you haven't installed the Google Play services SDK yet, go get it now by following the guide to Adding SDK Packages.
To test your app when using the Google Play services SDK, you must use either:
- A compatible Android device that runs Android 2.3 or higher and includes Google Play Store.
- The Android emulator with an AVD that runs the Google APIs platform based on Android 4.2.2 or higher.