An Empirical Study on the Relationship between Service Industry Structure and Economic Growth in China

The level of service industry development has become an important sign of the socialization of production and market economy development in a country.In this article service industry is divided into modern service industry and traditional service.Based on 1978-2007 statistical data,an empirical economic model on the relationship between the service industry structure and economic growth is set up by using Cointegration relationship test and Granger causality test.The results show that the modern services,the traditional services,and economic growth exist the long-term stable relationship,but the internal structure of the service industry is unbalanced.Meanwhile,the paper puts forward the politic suggestions for the structure of the service industry.