A Strategic Thinking on the Acceleration of Economic Growth by Advanced Service Industry

Following China's entry into WTO, foreign advanced service industry hsa rushed into China with some variables relevant to development, thus affecting the advanced industry with weak foundation and the traditional third industry in China. The so-called advanced industry refers to the knowledge-intensive industry such as finance, materials distribution and economic-technologic consultation. The development of advanced industry can not only enable China to meet the challenges of WTO, but also establish a mutual-beneficial relationship between its rapid growth in GDP and the development of the third industry. There are two necessary conditions to develop advanced service industry:first, it needs the support of human resources with high quality;second,it needs certain multiplier effect to expand its radiation effect. The paper holds that to develop advaned service industry on the basis of the fundamental development of education industry may produce the effect of killing many birds with one stone:first, it helps to attract foreign capital to invest in hi-tech industry; second, it helps to transfer the results of science and technology into practical application through the activities from industry, university and institute; third, it helps to set up advantageous communities with a great number of specialists of science and technology as well as specialists of soft science, in order to dominate the high-leveled service market quickly; fourth, the advantages of communities with specialist from all fields will not only be able to have leading effect on marginal consumption propensity, but also be able to promote the adjustment of the first, second and third industries, and expand the multiplier effect of economic growth.