The Impact Of The Openness In Service Industry On The Level Of Industrial Structure In Guangdong Province

From the perspective of positivism, this paper analyzes the impact of the openness in service industry on the level of industrial structure in Guangdong province. Through a VAR model based on 1990-2008 time series data, and using the impulse response function, this paper analyzes empirically the dynamic relationships between the openness in service industry and the level of industrial structure in Guangdong province. Empirical results show that the openness in service industry has improved obviously the level of industrial structure. The openness of the service industry can be divided into the trade openness and the foreign capital openness, the foreign capital openness plays a more important role than the trade openness in improving its own industrial structure level. The foreign capital openness of service industry promotes Guangdong overall level of industrial structure mainly through direct role in the third industry. Relative to the own growth of the level of industrial structure in Guangdong, the effects of the openness in service industry are limited and significant in short-term. Therefore, Guangdong should enhance the openness in service industry by taking relative measures to facilitate the promotion of the industrial structure level.