| Modern service industry plays an important role in the regional economic and social development. It is the key to seize the commanding heights of the industry competition and the stepping stone to stimulate the industrial restructuring. In recent years, although Fujian Province has made some progress in the development of modern service industry, it is still facing many problems. How to improve the competitive advantage of the modern service industry has become one of the important challenges Fujian Province encounters. Therefore, evaluating the modern service industry’s competitiveness, finding out the main factors that restrict the development of competitive advantages in modern service industry, proposing corresponding countermeasures and suggestions are extremely important for Fujian Province.This paper firstly analyzes the background and context of the research, the significance of the research, the domestic and international research status on the same topic, and then summarizes the meaning of modern service industry, the typical development trends of modern service industry at home and abroad. Considering the complexity and comprehensiveness of the evaluation of modern service industry’s competitive advantages, and the purpose to achieve an objective knowledge of the competitive advantages of the modern service industry in Fujian Province, this paper uses Malmquist index analysis to measure TFP index of the modern service industry in Fujian Province based on the existing studies. This paper also builds evaluation index system of modern service industry’s competitiveness covered by TFP, and aims to use global entropy method for the comprehensive evaluation. In the following sections, based on the analysis on the micro level, we use the global entropy method to evaluate nine cities’ modern service industry competitiveness in Fujian Province and the industrial competitiveness of nice modern service industries. The results show that the level of competitiveness of Fujian modern service industry has increased in recent years. But when it’s compared with developed areas of China, there is still a small gap in terms of modem service industry competitiveness. Fujian Province is the last one in the rank of modern service industry’s competitiveness of the six provinces in this evaluation. The imbalance situation between regions and industries of Fujian Province are significant.Based on the results of the research, this paper summarizes some major factors restricting the modern service industry competitiveness of Fujian Province. They are as follows, the overall size is relatively small; the structural levels need to be improved; the growth capacity is relatively weak; the development environment needs to be improved; the regional development is not balanced; the internal industrial environments have significant differences; the awareness of development is relatively weak; the institutional mechanism is still not perfect and so on. Finally, based on the foregoing findings, this paper proposes the countermeasures to enhance the competitiveness of modern services in Fujian Province including expanding the scale of the industry development, promoting the level of the industrial structure, strengthening the growth ability of industry, optimizing the environment of industrial development, coordinating the development plans and processes of different areas, promoting the balance of development in the industry, cultivating the public awareness and improving the relevant systems and mechanisms, etc. |