Research On Development Of Tertiary Industry In Nanjing

The law of industry development indicates that with the speeding process ofindustrialization, the industrial structure is now regulating progressively. The primaryindustry is sustained decreasing in the proportion of GDP while the secondary industry isconspicuous increasing, simultaneously, there is a great change of the proportion among thethree industries. The labour force surely transfer from the primary industry, and be absorbedswiftly by the secondary and the tertiary industries. From the above we can make out thatthe tertiary industry is developing progressively and takes more and more important role inGDP. However, the promotion and the changing of the industry will not happen just in timeduring the same period in every country or every region, especially the tertiary industry.The researchers are interested in all the following as: the regional economy development toa specific level, the position of the tertiary industry in the regional economy, the affectionof the tertiary industry in the regional economy and its relationship between the other twoindustries.Nanjing as provincial capital of Jiangsu, after the reform and open policy, its regionaleconomy keeps up a steady increasing and its development of tertiary industry is always apropelling force for economical growth. In fact, accelerating the tertiary industry andraising its standing in the local economy is one of the orientations of the local governmentaleconomy policy during the past few years. From the concrete condition that we understandthe proportion of the tertiary industry is expanding by degrees, from beforehand agriculturalleadership transition to secondary industry and tertiary industry pushing. The proportion oftertiary industry once surpass the secondary industry during the years from 1993 to 2003,the top proportion is upto 51%. Simultaneously interior various sectors of tertiary industryhave developed rapidly, forming a very good prospect of traditional and emergent industries.Meanwhile, the superiority is prominent in outplacement of the tertiary industry. Thenumber of the outplacement of the tertiary industry among the total proportion is on thehigh level. However, there are some problems in the development of the tertiary industry,the proportion of the tertiary industry is decreasing in the local economy in general, and theoutplacement is decreasing as well, the speed of the development is slowing in special. The phenomenon of these problems bring about close attention of related organizations. What'sthe cause that bring about the problems? Are they normal in the regional economydevelopment? Are there the same problems in the other cities? It is very practical to answerthese questions for the promotion of the tertiary industry and for the high speed increasingof the local economy.In order to solve the above problems, this research overall object was: (1) estimate andanalyze the position and the level of the tertiary industry development in Nanjing, in case ofthe adjustment of the industry structure and the high speed developing of economy, wemust correctly understood development stage of Nanjing's tertiary industry;comprehensively appraised development level of Nanjing's tertiary industry; whollyestimated the developmental level of Nanjing tertiary industry. (2) compare with theneighbouring cities, analyze the similar neighbouring cities to see whether they have thesimilar problems in developing process, and analyze the identical and different problems ofthe development of Nanjing. These are very important for solving the problems. (3)adjustment of Nanjing's tertiary industry developmental productivity and the returns toscale, through the judgement of the input crucial coponents of capital and labor whichproduc an effect on the development of the tertiary industry, we understand the operationof the two input crucial coponents and the condition of the returns of scale, discussing theefficiency of the development of the tertiary industry. (4) analyse the influence element ofNanjing's tertiary industry. There are lots of elements which affect the development of thetertiary industry. The key affection is very important to the further development of thetertiary industry.Revolving round the above questions and points of departure, this thesis adopts combinedmethods of qualitative analysis, quantitative analysis, model analysis and concrete evidenceanalysis, and it makes a thorough and systematically research of the developing level andefficiency of Nanjing's tertiary industry. Firstly, correctly understand the development stageof Nanjing's tertiary industry from historical and the realistic aspect, from the vertical andhorizontal comparison. Estimate the development level of Nanjing's tertiary industry totally.Next, appraise the contribution to the economic growth of Nanjing's tertiary industry, theefficiency of the development as well as the condition development of the tertiary industryrelied on. Finally are the conclusions as follow:(1)developing level:â‘ Before reforming and open, the tertiary industry was not attachedimportance because of the concentration on restoring agricultural production and the starting of industrialization, furthermore, the whole country was at a special period, andthe tertiary industry was developing slowly, even at a standstill or backwards. The tertiaryindustry was critical behind the level of the economy development. That was not in linewith the law of the development of the industry structure.â‘¡After reforming and open,city economy development have being standardized gradually, the tertiary industry wasgetting restored and developed, especially after the 1990s, our government made theadjustment policy of the tertiary industry, which laid a solid foundation for the laterdevelopment of tertiary industry. Tertiary industry has great developed and its gross levelincreased and its proportion in local economy raised.â‘¢now, the Nanjing's tertiary industryis at the second stage of industrialization and broad in scale as the landmark of industrystructure development to the third stage of high speed development of tertiary industry asits landmark. It is normal for the proportion of the tertiary industry getting down and thegrowth getting up slowly during the period.(2)cities comparison:â‘ through the developing level, the absolute scale of Nanjing'stertiary industry is almost the same as Suzhou, Wuxi in the year of 1993, but with thedevelopment of economy, the disparity is getting wider among the three cities. Thedeveloping scale of Nanjing's tertiary industry is lower than Suzhou's, but the per personadding value of tertiary industry in Nanjing is almost the same as in Suzhou, higher thanthe other two cities. Through the proportion of the output value of the tertiary industry,Nanjing's is higher than the other three cities. That indicates the degree and the fruitage ofthe adjustment of the industry structure. In the past two years, the proportion of the tertiaryindustry was getting down and the growth was getting up slowly.â‘¡speeding comparison:Nanjing has no advantage in speeding of tertiary industry than the other three cities. All thefour cities have the same tendency in speeding of the tertiary industry.â‘¢functioncomparison: Through the contribution of the tertiary industry to the economy growth, thecontribution proportion of Nanjing's tertiary industry is higher than the other three cities.Itpromotes the city economic development. Through the contribution of the interior varioussectors to the economy growth, the contribution proportion of the four cities traditionalsectors are on the same level, but the emergent industries in Nanjing have morecontribution proportion than Suzhou, Wuxi and Changzhou, eventhough, there is wide gapwith the developed countries and regions, it has a great potentiality in developing.â‘£through the outplacement we can see that Nanjing is much higher than the other three citiesin the proportion of the tertiary industry and in the capacity of outplacement. It makes great contribution to the transfer of the rural labour for the process of urbanization.(3)productivity and returns to scale:â‘ the results about productivity of tertiary industryfrom 1992 to 2004 in Nanjing found that the marginal output elasticity of labor is greaterthan the marginal output elasticity of capital. The marginal output elasticity of laborexceeds 1, while the marginal output elasticity of capital is below 1, so the inputcontribution of labor is significant greater than that of capital. However, the contribution oflabor and capital keeps dropping from 1992 to 2004 in Nanjing.â‘¡it is also a significantdifficulty in the marginal output productivities of two inputs. The marginal outputproductivity of capital shows descend tendency constantly, but the marginal outputproductivity of labor shows ascent tendency constantly.â‘¢it is obvious effect of returns toscale in Nanjing's tertiary industry which is in stage of increasing. The elasticity of returnsto scale is higher than 1, that is to say, it is great potentiality and delay effect in Nanjing'stertiary industry.â‘£the factor substitution elasticity between labor and capital is over 1from 1992 to 2004, and shows uptrend, so two factors is easy to substitute each other.(4)influence elements:â‘ The element of requirement makes the development of Nanjing'stertiary industry greatly. We investigated on the spot of the city's level of the economydevelopment, the process of the urbanization and the level of consumption, ect. All thethree targets have an activity influence on the development of the tertiary industry, amongthe three, the urbanization has an obviously influence on the development of the tertiaryindustry.â‘¡Through the supply element that we can feel the level of the investment incapital construction has a striking influence on the development of the tertiary industry,while the level of the governmental expenditure has a negative influence on the tertiaryindustry. This should arouse the attention of the government, meanwhile, it can refrain froma negative influence on the governmental expenditure level on the tertiary industrydevelopment.