An Empirical Study on the Interaction Between Economic Growth and Industry Structure in Service Industry in China

The development of service industry should not only take economic gross of service industry into consideration, but also pay more attention to its structure of development. Through optimization of internal industry structure in service industry, service industry will serve as a lubricant for the smooth operation of our society. This thesis, through empirically selecting related data from 1978 to 2009 in service industry in China and constructing entropy index, makes an evaluation on structure features in service industry and then makes use of logit model to empirically analyze the relationship between industry structure and gross growth in service industry. According to the result, the growth of economic gross in service industry is the important driving force for the diversity of industry structure. Meanwhile, due adjustment should be made towards the inducement which may lead to structural diversity.