Study On The Impact Of The Upgrading Of Service Industry Structure On Hong Kong's Economic Growth

This study aims to explain the slowing economic growth in Hong Kong since 1997 from the perspective of the upgrading of industrial structure.The paper demonstrates the progress of the upgrading of industrial structure in Hong Kong based on the data and materials since its return to the motherland.Then compared with Shanghai and the Hong Kong economy before the return to find whether there is a long-term stable relationship between the upgrading of service industry and economic growth.Firstly,the index of upgrading of industrial structure is divided into rationalization and optimization to make a qualitative analysis of service industry structure upgrading.Secondly,establishing the economic model.Considering the fact that the service sector accounted for 92.7% in 2016,the article regards the service industry as the main body to study the upgrading of Hong Kong's industrial structure.Therefore,the rationalization and optimization of the industrial structure refer to the upgrading of the internal structure of the service industry.We find that if the upgrading of industrial structure is divided into rationalization and optimization,then stability in service industry hasn't promoted the economic development since the return of Hong Kong,while the trend toward optimization has boosted the economic growth.This has partly explain why Hong Kong appears slow economic growth when the industry that prioritizes high-value develops slowly.However the rationalization is found to has remarkable relationship with economic growth before its returning,that is to say,the stability between service industry is the motivation of economic growth,but optimization seems makes little difference.However,in terms of Shanghai since 1997,rationalization makes remarkable difference in economic growth,but economic growth have more influence on optimization.Finally,the SAR Government is suggested to keep the strategy of high value-added industrial structure,giving more upgrading guidance and support to high value-added industries,such as the technological and innovative industry,the financial industry,etc.