An Empirical Study On The Effects Of Chinese Public Service On Advancement Of Industrial Structure

According to the delivery at the 19^th National Congress of the Communist Party of China,China's economy has been transitioning from a phase of rapid growth to a stage of high-quality development.This is a pivotal stage for transforming our growth model,improving our economic structure,and fostering new drivers of growth.It is imperative that we develop a modernized economy.This is both an urgent requirement for getting us smoothly through this critical transition and a strategic goal for China's development.The modernized economy is rich in connotation.The industrial upgrading of moving industries up to the medium-high end of the global value chain is the only way to develop a modernized economy.In practice,the advancement of industrial structure is accompanied with value-creating changed from manufacturing in the medium of industrial chain up to the R&D,designing,branding,consulting,accounting,marketing and other professional services in the two ends of industrial chain.As the industrial structure climbs to a higher level,the intensity of production factors such as knowledge,technology,information increases.The development of industry raises higher demands on human capital and public service environment.The development of public service becomes an important factor for the advancement of industrial structure.This paper attempts to apply the theory of public goods,industry economics,endogenous growth theory and new structural economics to theoretically and systematically analyze the relationship between public service and industrial structure,and empirically analyze it by econometric models,on the base of which some policy recommendations on how to take advantage of public service to promote the industrial structure are put forward.The research results show that there is a significant positive relationship between the public service and the advancement of industrial structure.The impact of public service on industrial structure are different in different regions.Eastern area occupies first place,western area comes second,middle area comes third.This is closely related to the economic performance.In contrast to middle and western areas,the economy of eastern regions is more developed,which means the fiscal solvency is more formidable and level of public service accommodation is better.Moreover,the mechanism of official appraisal and promotion based on GDP aggravates the gap.Middle and western governments that are in weak financial conditions prefer to promote infrastructure investment,which isn't good for other public services such as education and health care.Finally,this paper suggests local government reform the assessment mechanism,restructure the public expenditure,build a public service-oriented government to make it more effective.