Study Of Convergence And Bilateral Spillovers Of Service Industry

In this paper discussed the services convergence and bilateral spillovers of Pan-YangtzeRiver Delta region by means of macroeconomic theory and econometric methods. Theservice industry convergence model and bilateral spillover effects model wasconstructed on the basis of domestic and foreign literature study. This paper reveals theinternal mechanism of service industry development by empirical analysis ofconvergence model and bilateral spillover effects model use the dynamic panel datemodel. The main content is divided into the following sections:First of all, the definition of service sector as well as the Pan-Yangtze River Deltaregion is discussed, and then the paper discussed the service industry. Through widelyread in literature of service industry, we find out the lasted research achievements.Secondly, this paper discussed the current situation of the service industry of thePan-Yangtze River Delta region and analyzes the characteristics of the service industry.We find that there are huge total output value gap between the service industries of thePan-Yangtze River Delta region while there also got the characteristic of similarstructure between them.Then, this paper builds the service industry convergence model as well as bilateralspillover effects model. The empirical analysis shows that the convergence of thePan-Yangtze River Delta is: transportation, warehousing and postal andtelecommunications sector (-0.0361%), education (-0.1227%), science research,technical services and geological prospecting industry (-0.2344%), health, socialsecurity and social welfare sector (-0.2290%), culture, sports and entertainment(-0.2040%), while the whole service sector is also showed to be convergence by thespeed of-0.0535%. The empirical analysis of bilateral spillover effects model of thePan-Yangtze River Delta region shows that the services sector is affected by each other,while the promote relationship is not symmetrical relationship, there are strengthdifference of spillover effects between them.Finally, according to the above empirical analysis, this paper makes conclusions ofthe empirical analysis and makes some policy recommendations.