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The Research on the Relationship between the Structure of Service Industry and Economic Growth in China

Author: LiuXiaoZhen
Tutor: CaoXianBing
School: Beijing Technology and Business University
Course: Industrial Economics
Keywords: Structure of service industry Economic Growth Co-integration Test Granger Causality Test
CLC: F124
Type: Master's thesis
Year: 2010
Downloads: 100
Quote: 0
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Abstract


With the development of productive forces, the service industry in the world economic and social development shows a rapid rise, and it has become a global trend of economic development, the level of which was identified as an important sign of socialization of production and the market economy development. Service industry has a lot of branches; their changes in the internal structure have a great impact on economic growth. China has not been industrialized completely. Service-based economy has not yet become the main form of China’s economy. Therefore, it is necessary to analyze the internal law and the general tendency of the development of service industry. The study of the inner link between the changes of its structure and economy growth, which is in order to lead the adjustability of the changes of its internal structure, is of great significance to economy growth.First of all, this paper discusses the general theory and the mechanism of the changes of structure of service industry based on the relationship between the structure of service industry and economic growth. Secondly, on this basis of the international comparison of China’s service industry, this article summarizes up the problems of the structure of China’s service industry. And through the Co-integration Test and Granger Causality Test of the structure of China’s service industry and economic growth, we conclude that there is long-run equilibrium relationship between the structural changes in the service industry and economic growth. The problem of China’s service industry is that the internal structure of service industry is irrational. The unreasonable structure exists on a leading position in the traditional service industry and the low proportion of modern service industry of our country. But the service structure from the traditional service-sector-led towards a modern service-sector-led, there is great potential for the development of modern service industry. In the end, based on the related conclusions, the paper puts forward the politic suggestions for the development and adjustment of service industry in our country.

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CLC: > Economic > The world economic profiles,economic history,economic geography > China's economy > Economic construction and development
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