Research On Service-oriented Transformation Of Industrial Structure In China

Service-oriented tendency of industrial structure is an important indicator of developed economies. Meanwhile, service industry accounts for a significant part in national economy and its boom plays a positive role in many aspects including accelerating the development of primary industry and secondary industry, promoting technology, stimulating economy and increasing revenue. Now our economy is constrained by a "multi-bottleneck" when the demographic dividend is declining, the cost of labor force and material factors is increasing as well as the advantage of low cost is disappearing. Thus, it is necessary to improve the quality of our national economy. This paper, by studying China’s service-oriented transformation of industrial structure, is aimed at probing and enriching the theory of the development phase of service industry, driving the level of service-rization and providing some suggestions for the service industry transformation of other countries both in theory and in reality.Service-oriented transformation of industrial structure is a dynamic process in which market performs an important role. Such importance can be seen from both the inside of market (production, consumption, demand and supply) and spatial differences thereof. When referred to research methods, starting from China’s service-rization, this paper employs dynamic and static combination analysis, empirical analysis and comparative analysis. After reviewing related researches and comparing service-oriented transformation of industrial structure in China and that of the world, I conduct my study through market endogenous. This paper can be divided into three parts. First, it discusses the topic from revenue increase, technological progress and capital deepening through Market Equilibrium Theory Model. Second, it regulates industrial structure of our national economy from two dimensions:demand and supply. Third, it explores changes resulting from service-oriented transformation of industrial structure within economy on the whole from a spatial aspect. Finally, it offers countermeasures accordingly.The main conclusions are as follows:First, it employs Service Index and Rasmussen Index to do the international comparative analysis of service-oriented transformation of industrial structure. To be specific, based on the comparison analysis of 19 OECD countries and BRICS through Service Index, this paper reaches the conclusion that there is a large gap between China and developed countries. What’s more, the gap between China and other developing countries is also noticeable. Then, based on the analysis of manufacturing industry’s direct dependence in 7 western countries and associated comparative analysis of complete dependence between manufacturing industry and service industry among different countries, it shows a tendency that as time goes by, service-rization is more common but different.Second, on the basis of statistics from 1997 to 2012, Holz Law and calibrated parameter, it constructs a market equilibrium model to get the overall stimulate measure and classified stimulate measure from revenue effect, technological progress, labor income share and so forth. It is found that avenue income increasing and capital deepening have remarkable influence on service-rization and the latter’s effect is more obvious. While the influence of technological progress variation is less significant.Third, this paper is developed from two aspects:demand and supply. In terms of demand (industrial correlation), it uses positive analysis to evaluate the panel data of different provinces in China and reaches the conclusion that the scale of industrial development and the level of service industry affect productive service industry in different ways. The former appears negative correlation, but the latter shows positive correlation. Therefore, service industry has "internal spillover effect". In terms of supply (capital deepening), this paper analyzes the panel data of 31 provinces of China during the period from 1997 to 2012. It uses system GMM to estimate parameter and draws the conclusion that promoting capital-labor ratio can accelerate the transformation of industrial structure which shows dramatic periodic feature.Fourth, this paper, through analysis of spatial econometric model panel, studies the industrial structure transformation value and Global Moran’s I Index. It also explores the issue by using and SEM from three fixed-effect models which are spatial, time and the combination of the two fixed effects. The result suggests that the industrial structure of these provinces is not random distribution but has spatial dependence and shows spatial variation.Fifth, it illustrates the strategies to China’s industrial structure transformation from several aspects like regulating based system, paying attention to government and market, establishing modern industry system and making innovations to develop service trade.