Research On Development Of Service Industry In Liaoning Province Based On The Target Of Urbanization

Urbanization is an inevitable result of the economic development in a country or region throughout the world. The improvement of urbanization is helpful to solve the problems of "Agriculture, Countryside and Farmers", helps provide better infrastructure and sounder social security for the urban population and improve living standard and consumption level. However, urbanization in a country or region cannot develop without the support of related industries. With the development of industrialization entering the middle and late periods, its effect of rejecting labor in Liaoning Province is becoming more and more apparent. Therefore, the service industry has become the new promotion of urbanization in Liaoning Province. In recent years, the government has gradually paid more attention to urbanization. In "The Twelfth Five-year Economic and Social Development Plan in Liaoning Province", the government sets goals as "Urbanization rate in Liaoning Province will reach70%in2015".This study has important significance for the government getting to know the status of urbanization and service industry development in Liaoning Province, optimizing the structure of the service industry, making use of service industry to promote urbanization and for the enterprises developing long-time development strategy.On the basis of the relevant theory and research, this thesis thoroughly studies how to develop the service industry to achieve the goal of urbanization in Liaoning Province. Firstly, the thesis defines the concepts of urbanization and the service industry and introduces the "S-shaped curve of Novartis" in order to pave the way for the following study. Secondly, the paper analyzes the status of urbanization and service industry from multiple perspectives in Liaoning Province. Thirdly, the author makes an empirical study on the relationship between the urbanization and the development of service industry in Liaoning Province. On the basis of qualitative analysis, the paper builds vector autoregression model(VAR) and concludes that the proportion of the employment of service industry Granger causes urbanization in Liaoning Province; then adopts multiple linear regression model to compare the influence of the proportion of each service industry’s urban employment on urbanization rate in Liaoning Province. Finally, based on the above analysis, the thesis sets the developing goal as "The urbanization rate of Liaoning Province will reach 70%in2015", and makes five suggestions at the same time in order to provide a reference for the government and enterprises, such as handling the relationship between the development of Secondary Industry and Tertiary Industry correctly, increasing the proportion of the employment of service industry in Liaoning Province appropriately, and each city developing several featured service industries combined with its own condition.