The Current Situation And Countermeasures On The Development Of The Service Industry In China

Along with the rapid development of our national economy since 1980s, the economic structure has undergone great changes, and the status of the service industry is growing more and more important. The development of service industry plays a key role in enlarging employment, transforming industrial structure, promoting economic growth, keeping society steady etc. It is an urgent task to recognize the actuality and difference accelerate the service industry development under the background of China's successfully entering WTO. Referring to the foreign newest theory, the author systemically analyzes the actuality of whole and regional development of the service industry. On the basis of the former study, this paper uses Baumol-Fuchs Model to examine the radical reason of the service industry development. At last, the author generally analyzes the influence factor and determinative factor.This paper shows that the service industry vertically develops fast and horizontally slow during 1985 and 2002. The proportion of employment, value-added and labour growth, characterizes the service industry development. It is obvious that the proportion of traditional service industry is low and that of the rising service industry isn't outstanding. And there exists "convergence club phenomenon" that is, before 1990s the difference in the regional service industry had gradually reduced, while after 1990s the difference has gradually enlarged. According to Baumol Macroeconomics of Unbalanced Growth Model, the radical reason for the rapid development of the service industry is that the growth rate of labour productivity in service industry is lagging .It indicates that income makes little difference in the value-added proportion and employment proportion in service industry with little difference in income; while the proportion obviously rises with income rising to a new level. And this makes elicitation sense to releasing the development law of service industry.At last, the author gives some advice on how to speed up service industry development: Firstly, Seriously deal with the following couple of connections, and try the best to create the superior macroeconomic surroundings. Secondly, optimize industrial structure, and balance the proportion of primary, secondary and tertiary industry and that of service industry inside. Thirdly, pay a good deal of attention to the unbalanced growth in regional service industry and promote harmonious and healthy development of service industry. Fourthly, Create complete multi-channels and multi-arrangement input mechanism. Fifthly, shorten the difference of different areas, enhance the income level of people and perpetually raise the service consumption level. Sixthly, speed up the step of cities and towns construction steadily. Finally, set up and amplify the statistical index system as soon as possible.