An Empirical Study Of Factors Affecting The Service Economy Growth

Compared with developed countries, China’s service economy is still in a relatively backward state, service economy as a new great potential growth point for the development of a country’s economy, relates to the future of a country’s competitive position in the international competition. Studying factors affecting service economy growth, has mportant practical significance to promote China’s service economy development even surpass those big service economy countyies and strong service economy countyies. Located between the eastern technology intensive industrial zone andwestern resources enrichment zone, Hubei province has important strategic position. The three industrial structure in Hubei is more backward than the national average even, optimizing three industrial structure in Hubei three and developing its service economy has been imminent.Firstly, This paper introduces service economy theory concept and from two aspects of demand and supply introduces service economy development motivation. Using the time series data from 2000 to 2011 in Hubei province, by setting up mathematical model, through multiple regression analysis method except from the level of industrialization, human capital inputs the two dimesions,also from the service industrial agglomeration to study the influence on service economy development in Hubei province. Secondly, Using generalized Difference Method model to overcome issues that appear in sequence in order to ensure the validity of the resulting model.The results show that:consumer demand for services from the continuous improvement of people’s living standards, increasement of per capita disposable income and upgrade of consumption structure and producer demand for services from Social production specialization together lead to the level of industrialization in Hubei Province can promote service economy development and the impact is significant; which is consistent with the conclusion from other scholars; Hubei province service industry is relatively single and low level, the lack of diversification does not bring positive effect, coupled with the hubei province service industry Industrial agglomeration in the time range studied in this paper is in a downward trend, the comparative advantage is not obvious, this two reasons bring that service industrial agglomeration has a negativeeffect on service economy development but with no significant effect; Service industry internal structure in hubei province is relatively backward, typical labor-intensive service industry as well as the relative lack of geographical location advantages, compare to Beijing, Shanghai et. big cities, index selection problem to measure human capital investment, common cause that human capital inputs has a role in promoting service economy development but also with no significant effect According to the research conclusion, this article separately from the level of industrialization, services industry agglomeration degree and human capital inputs three angle put forward policy recommendations.