Research On Service Industry’s Connection And Its Influence On Economic Growth In Jilin Province

The service industry is an important part of the national economy. The level ofdevelopment of service industries is an important indicator of socio-economic level ofdevelopment. China’s service industry is not only facing unprecedented opportunitiesin the Twelfth Five-Year Plan time period， but also facing some challenges.However， from a global point of view，this will be the best period of thedevelopment environment since the reform and opening up.During this period，service industry may achieve leapfrog development.China is accelerating towards theservice economy. To develop the service industry more rapidly and improve theproportion of service industries in the three industrial structure is a most importantway to promote economic structural adjustment and change the mode of economicgrowth. Accelerat-ing the development of service industries could broaden new avenues of employmentfrom the urban and rural areas，which can satisfy the needs of the people’s materialand cultural life better. In order to implement the "State Council’s suggestion onaccelerating the development of services"（Guo Fa[2007]7）， Jilin ProvincialGovernment issued a "decision" to promote the service industry achieving leapfrogdevelopmen（tJi Fa [2007]10）. In recent years，all of leaders give a high degree of att-ention to the development of the service industry.Therefore，the research on theservice industry of Jilin Province，especially on service industry’s connection and itsinfluence on economic growth in Jilin Province，can promote the service industryachieving leapfrog development and raising the overall level and strength ofdevelopment of service industry in Jilin Province.So it has a practical significance topromote the development of the whole regiongl economic.In this paper，we combined the methods of theoretical research and empirical research.Firstly，we introduced some related theory of services，whuch included themeaning and classification of the service industry，theories of stages of developmentin services，theories about the relationship between the service industry and economicgrowth.Secondly，we make an empirical study. In the first part，we use input-outputmodel to calculate some economic coefficient of Jilin Province input-output tables in2002and2007，applying empirical analysis and comparative analysis about Jilin ser-vice industry relevance effect and spread effect. In the second part， we usequantitative analysis method to make unit root tests，cointegration test and Grangercausality test.From the results，we know that the service industry of Jilin Province hasa positive effect on economic growth and it become more and more obvious，but sucheffect is still small.It mostly because the overall economic development level is low，the basis of the service industry is weak and the level of services internal structure isalso low. Acorrding to these issues in the development of the service industry，wemake some suggestions to improve the development environment of service industryand optimize its internal structure.