Analysis of the Influence Factors and Strategies of theDevelopment in Zhejiang Service Industry

This paper reviews the development and some problems of service industry in Zhejiang. The factors which may influence the service industry in Zhejiang are analyzed by econometric methods. It tests the influence of average GDP on some index of the development of service industry with national data and local data from Beijing, Shanghai and Zhejiang. In two multivariate regression models, average GDP, population density, average disposal income of urban residents are main exogenous variables, and the endogenous variables are service industry added value and the ratio of service industry employee. The paper concludes with several policy suggestions.