A Study On Service-sector Productivity And Its Economic Growth

Tertiary industry is so called service-sector which is the industry besides the first andsecond industry. Now the level of its development was identified as important sign of acountry economic growth. The service-sector output of the west countries occupies about60~70% of its GDP in past ten years,therefore,service-sector economic growth is payedattention to by many countries. The theory of economic growth is the best oldest andvoguish problem. How much does productivity make contribution toward economicgrowth, different economists in the world give dissimilar answers and suggest hypothesisto explain why productivity growth of service-sector has been slower or stop in the past tenyears. Since the initiative of economic reform in the late 1980, the Chinese economy hassustained a continuously high rate of annual growth. This seemingly miraculous growthhas attracted the attention of many economists in the world. However, most previousstudies have focused only on the industrial or agricultural sectors and about service-sectoreconomic growth studies are less, moreover, productivity studies have been done muchless, perhaps due to the limitation of statistics of service-sector in China. So that,"Research on service-sector productivity and its economic growth" is brought forward andget auspice from Hubei provincial science & technology department. In 2004, National Science Foundation of China approves my research: ProjectResearch on the theories of service-sector productivity and its application in China. This paper discusses some basic theories of service-sector economic growth,measurements of service-sector productivity, which relate to the theories of economicgrowth, productivity, statistics and econometrics. A stochastic frontier method andempirical study are used to establish econometrics of service-sector of China to examinethe contribution of productivity and factor input to service-sector economic growth. Afterdynamic factors are discussed father, the paper analyzes the sources of service-sectoreconomic growth in China. On the basis of above studies, the paper analyzes status ofservice-sector of China, then put forward to suggestions which make service-sectoreconomic of China to grow. Firstly, this dissertation gives a theory review of service-sector economic growth. Atthe very start, it defines and classifies service-sector. Then this dissertation analyses thetheories of economic growth, service-sector economic growth, measurement ofproductivity roundly and systemic. After discussing why productivity growth ofservice-sector has been slower or stop in the past ten years,the paper gets its opinions andmethods. Third, this essay studies the position of China economic development andconfirms its arm and contents. IVSecondly, for the sake of analyzing quantitatively contributions of factor input andproductivity to service-sector economic growth of China, this thesis applies internationaltheory methods to China and attempt to set up the model of service-sector productivity ofChina. When productivity is defined, the paper classifies it into three kind: macroscopicalproductivity, industry productivity and enterprise productivity. The content of this thesisis limited in macroscopical productivity. After some types of productivity model areanalyzed, the paper brings forward macroscopical productivity econometrics model ofservice-sector in China with using panel data and gets the computer models ofTE(Technical efficiency) and TP(Technical progress) separately. Thirdly, based on above analyses of theory model of service-sector productivity,the paper applies empirical study to researching service-sector productivity between 1992and 2002 in China. Data issues are nodus and keystone in this thesis. The paper refers tomore than 400 yearbooks with using many approaches and does some innovation worksabout service-sector capital stock data and overcomes the nodus of data issues...