Causes of Lagging Development in Tertiary Industry and Structural Adjustment

The process of providing service is also a process of purchaser consuming service products. In service industry, production and consumption should be consistent both in time and in space. This feature would limit the flexible flow of production factors and result in regionalization of service markets. Causes of lagging development in our country's tertiary industry are: (1) lack of highly qualified labour force; (2) backward business mode, which often results in industrial deficiency; and (3) the existing management system, which is detrimental to interregional business. To promote the development of the tertiary industry, the government should renovate the industrial system, solve the technical, managerial and institutional problems, and reduce the system operation cost of production service industry.