The Convergence Analysis On Differences Of Regional Development Of Service Industry In China

Since the reform and opening up took place in China, The service industry has made great progress with its rapid economic growth, which becomes a new motive of for the economy. However, In spite of its rapid development, there were many problems not ignored in the development process of our service economy. Among them, the unbalance of regional development is just a realistic problem which held back the development of our service industry. At present, a great majority of researchers concentrated on the relationship between the economy and the service industry, and factors influencing the service industry, and how the development of service industry affects the industrial structure and so on, rarely focus on the regional unbalance of the service industry. Therefore, the research to the development of regional service industry not only has important realistic meaning, but also gives a small amount of the empirical reference for others. Firstly, the paper put forward the detailed description and analysis of the regional unbalance of the service industry in China. With the use of standard deviation and coefficient of variation method, the paper carries on the analysis of the absolute and relative gap among the service industry of provinces in china, which is based on the index of per effective service industrial added value from 1978 to 2008.In a word, the analysis draw that the relative gap showed the tortuous expansion as the wave when the absolute gap is always rising. Secondly, according to the convergence theory in theory of Economic Growth, The paper implements convergence tests for our regional gap of the service industry and its speed. There are three convergence tests:s-convergence,β-convergence and club convergence, andβ-convergence tests include unlimitedβ-convergence andβ-convergence under certain conditions. Making use of the data from 1978 to 2008, the conclusion is drawn on the basis of the convergence tests equation. As follow:The analysis of s-convergence shows the following phenomenon. There didn't exist obvious trend of s-convergence in the development of our service industry since the reform and opening-up.but from the viewpoint of interior regions, the three regions performance differs. During the period, there was obvious trend of s-convergence for the development of the service industry in eastern region, and the trend performed more obvious before 1995. Then the middle and western region is similar to the whole country, which didn't have the trend of s-convergence. There was the expanding trend of the gap among their service industry, although it wasn't evident; Theβ-convergence result reflects that there was obvious trend ofβ-convergence for the development of the service industry after the reform and opening-up, which only took place in eastern region, not in national regions except the east, but B-convergence existed in national regions under some condition; After the empirical analysis of club convergence, the result is drawn that the club convergence appeared the development of the service industry in our country after the reform and opening-up, if provinces had only the same economic structure. In other words, the gap of the service industry among three regions didn't decrease, but increased. however, it was obvious that the convergence separately happened in their internal regions. Finally, on the base of the conclusion above, the paper continues to explore what led to the gap of service industry in three regions since the reform and opening up was carried out? Therefore, A panel-data model is introduced. After the empirical analysis for the service industry among three regions in our country, it is found that only the second industry has a significant impact on the development of service industry, which is among a number of factors. The foundation reflects the development of service industry in China still doesn't develop independently, but attached to the development of secondary industry. The last of the paper gives the conclusions in the empirical analysis above, and proposes recommendations for development of regional service industry.