The Research On Government Role In Promoting Service Industry Development Of Small And Medium-Sized Cities

Nowadays, the developed countries have come into the post-industry society. The percentage of their secondary industry in GDP is getting lower and lower, while the service industry is having a new high development, which indicates that the world is getting into an era of service economy. In recent years, the economy of China has developed by leaps and bounds. Though China is still in the early stage of the industrialization development, its service industry is developing so quickly that it is becoming the engine of the economy development of a new age. Yangtze delta, led by Shanghai, is the most vigorous economic region in China, which has a developed manufacturing industry and a fast-developing service industry. The expansion of the regional economy and the continuous heightening of the service requirement ask for an upgraded and more energetically developed service industry in most small and medium-sized cities in this region.Cities distribute closely in the Yangtze delta, have close economic strength and development level as well as similar development mode, which result in serious assimilation of industrial structure of many cities, thus heat up the competition of resources and market among these cities. Especially, under the radiation of metropolis like Shanghai and Nanjing, the service industry development of small and medium-sized cities are restricted in many fields such as resources, environment, policies, human resources and so on. The internal cause for the service industry development is undoubtedly the power of market, but without a vigorous promotion from the government as an external cause, it is impossible to develop service industry well. So it has already been an urgent study for small and medium-size cities in Yangtze delta to solve the problem about how to take advantage to advance the development of service industry, especially about what measures the government shall take to help the development. There have been quite a lot studies on service industry, but most of them are from the standpoint of industrial development and based on the service industry development in large cities like Shanghai. Few are from the standpoint of government. This paper provided a new standpoint from the government to study the service industry development path for the development of regional service industry.Based on the study of the basic law of service industry development and government role theory, this paper takes Wujin District in Changzhou for example for study. Through analyzing the development state and existing problem of service industry in Wujin, four aspects of existing problems are revealed in this paper about the development of service industry in small and medium-sized cities. First is the vacancy or offside of the government; second is absence of supporting policies; third is lack of knowledge about the importance of service industry; fourth is lack of innovation. Against above problems, this paper has a deepened consideration and comes up with a conclusion that the government should play a proper role in the study of development strategy, the setting-up of the supporting policies, the establishment of the coordinating organization and the innovation of policy study to strengthen its administration.