Mechnism And Empirical Analysis On Interrelations Development Between Urbanization And Service Industry

Now the economic of China can not boom without two important policies, one isnew urbanization, the other is the adjustment of industrial structure. The core of thepaper written in this background is to do a reaserch on the interaction analysis betweennew urbanization and the development of the service industry in China. The importantsubstance are as follows.The interaction mechanism between urbanization and service industry is concludedsystematically in the second chapter. They are listed in order that how urbanizationpromote development of service industry; how the development of service industrypromote urbanization; how the urbanization and development of service industrypromote each other. Further more, in the end of this chapter a dynamic model isconstructed.One of the creations in this paper is the empirical analysis between urbanizaion anddevelopment of service industry in China. For this empirical analysis, we choose thelevel of urbanizaiton which is measured by the population in city portion of the totalpopulation and development of sercice industry which is caculated by the output of theservice products every year. And we choose the dates of urbanization level anddevelopment of the service industy of the whole country from the year1985to2011.After causality relationship test to these dates, we get that the development of serviceindustry is helpful to promote the urbanization while urbanization is less helpful topromote the development of service industry. Two reasons can do interpretation to theconclusion. Firstly, urbanization in China is conducted so heavily by the governmentthat the development of service industry can not catch up with the speedy urbanization.Secondly, there are a lot of obstacles in the field of service industry, such as the strictentrance conditions, government monopoly, government intervention， financialproblems, shortage of human capital and so on.Based on the questions and conclusions above, we suggest that the government dothe best to do impovement as follows. Fistly, the pace of the urbanization should beslow down for that the devlopment of service industry can catch up easily withurbanization. Secondly, the reform of market-oriented in the field of service industryshould speed up and the development of service industry will be thriving in a healthyenvironment. Thirdly, the sophisticated talents for the development of the modernsevvice are necessary.