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Study on Promotion of Development of Services Industry by Urbanization in China

Author: LiuJia
Tutor: ZengGuoPing
School: Chongqing University
Course: Industrial Economics
Keywords: Urbanization Service industry Interactive development
CLC: F719
Type: Master's thesis
Year: 2008
Downloads: 430
Quote: 0
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Abstract


Through the analysis on the interactive development history of service industry and urbanization in China, the paper concluded that, driven by economic growth and system changes, the structure and space interaction between China’s service industry and urbanization is moving from the multi-distortions under the planning economy towards a basic harmony under the market economy. Presently, the major problems found in the interactive development of our service industry and urbanization includes an inadequate supply of social services and insufficient conglomeration in producer services.Based on the unit root tests, co-integration tests and error correction models for panel data, the paper empirically researches the relationship between the development of services industry and urbanization in Chinese Eastern Region, Middle Region and Western Region and forwards the relevant suggestion. The results show that there is obvious difference in three Regions of China, in the lone team there is the reciprocal cause-and-effect relationships among the development of service industry and urbanization, in the short team there is no relationship between the development of services industry and urbanization in Eastern Region; there is a lone team causality relationship from the development of service industry to urbanization, and there is a short team causality relationship from the urbanization to development of service industry in Middle region; there is no any relationship between the development of services industry and urbanization in Western Region.To tackle these problems, the paper suggests combining the new type of industrialization with diversified urbanizations and at the same time, enhancing coordination between urban and regional development, accelerating opening the service market, and expanding government supplies of public services.

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CLC: > Economic > Trade and Economic > Domestic Trade and Economic > Services sector
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