Government Expenditure And The Influence Of The Service Economy Growth

Since1950, the development of service industry increases rapidly and increases avalue to occupy the proportion of GDP rising. At present, most of the countries in theworld service industry increases a value to occupy more than50%of the wholesociety, while providing more than half of the jobs," service economy" already beworthy of the name, service industry has occupied the dominant position in nationaleconomy, will become the future economic growth process is the main motive force.After the reform and open policy, the service industry in China has entered a stage ofvigorous development, the proportion of service industry is increasing, therefore theservice economy development and growth has become the focus of people’s attention.After the financial crisis, caused a worldwide recession, the outbreak of Europeandebt crisis makes the whole the international environment has received a heavy blow,has been to rely on exports to support economic development in our country by thehuge impact. How to effectively the development of service economy, how toeffectively to economic transition, the government should play what role in thisprocess, all of these are worthy of our study.The purpose of this paper is to discuss service economy growth mechanism,through the study of service economic driving factors, find out the key to serviceeconomy, and through the decomposition research of government spending,government spending and services growth driver. In this paper, through theoreticalanalysis concludes that government spending effectively promoted the service thethree main drivers of economic growth, residents’ consumption, human capital andtechnological change. The government’s purchase expenditure for human capital andtechnological changes have very good into effect, the government’s transfer paymentfor the formation of human capital and the consumer promotion has the very bigcontribution. And according to our country national condition, the purchase accountsfor the main proportion of government spending, so the country’s more governmentspending to stimulate the technical change and the formation of human capital.Usingempirical and services the technical efficiency of this unique Angle of view, in orderto service in Yangtze river delta economic growth as samples, based on the technicalefficiency analysis of the influence of government spending for services, points outthe influence factors of government spending is to promote service industry laborproductivity, and thus demonstrates the government spending for service role inpromoting economic growth. This paper in the final for government spending for services to summarized the influence of economic growth, and how governmentspending more effectively promote the growth of service economy a little personalsuggestion are given.