A Reinterpretation Of The "mystery Of The Service Industry" In The Digital Economy Era

Recently,China is confronted with such global and internal problems as sluggish world economic growth,recovery of unilateralism,continuous local conflicts,structural imbalance and backward industrial structure problems.How to achieve High-quality economic development with innovation is the primary problem facing our country.The development of the service industry plays an important role in a country’s economic growth,and is an important indicator to measure the country’s strength.It has significant impacts on China’s expansion of internal demand,optimization of industrial structure,alleviation of structural contradictions,and improvement of people’s living standards.As the proportion of service industry keeps increasing,the riddle of service industry is essential problem that puzzles the whole world.In the digital era,service industry is the most basic sector in economy,information technology could optimize the structure of economy,improve the efficiency of services,create new mode and new formats.Under the background of the digital economy,research on “mystery of service industry” is of great importance to improve economic growth.This paper makes an empirical study on the "mystery of the service industry" for the first time with the panel data of provincial sub-departments,and gives a new era explanation of the "mystery of the service industry" from the perspective of product diversity,then drawing innovative conclusions and Suggestions.The first is about the heterogeneous relationship of "industrial structure-productivity-relative cost" between different sectors of the service industry,and the second is about the new transmission path of information technology,product diversity and mystery of the service industry.This paper takes “the mystery of the service industry” and the digital economy as the main clues.After extensively sorting and analyzing the relevant literature,with the “speed-structure-efficiency-cost” framework and China’s service industry data from 1990 to 2017,the development status of the service industry in China is explored.Secondly,the panel data of the service sectors that are at the national and provincial levels from 2004 to 2017 are used innovatively for the first time to verify the "structureefficiency-cost" relationship between the overall service industry and internal departments in China.It shows that there is a "service industry mystery" in China’s service industry as a whole and within various departments.For the whole service industry,all of the value-added share of the service industry the employment share and relative price is significantly positively correlated with the industry’s relative service industry productivity.For each sector within the service industry,the relative industrial productivity of the sector is significantly positively correlated with the value added of the sector while significantly negatively correlated with employment share.There exists positive and negative correlation between the relative productivity and relative price(wage).There is significant heterogeneity among sectors.And then,based on the analysis of the development of digital economy,the impact of the digital economy on the economy at macro,meso,and micro levels is explored in this paper.Further,"the mystery of the service industry" is explained from the perspective of product diversity and the influence path of "the information technology development-product diversityproductivity" is concluded,which is verified by the results of simple empirical analysis by using China’s data.Through the above analysis and research,there are the following conclusions to sum up.In the era of digital economy,There still exists " the mystery of the service industry” and there is heterogeneity among departments,and the development of information technology has brought about an increase in product diversity with the increasing cost of the service industry.The efficiency of diversity cannot be measured effectively by the existing statistical system,which is considered as a price factor that should be eliminated.We must insist on accelerating the development of the service industry and building a service-oriented economy.At the same time,the development of the service industry must be shifted from a high speed to a high-quality development.We must not only increase the share of the service industry,but also optimize the structure and improve efficiency.We must accelerate the integration of digital technology and service industry to further give play to the leading role of the service industry in integration of the digital economy and industry.We must improve the statistical system of output value and productivity,and examine the efficiency of diversification.