Income Gap And The Development Of Service Industry In The Transofrmation Period

This paper studies the relationship between income gap of the residents and the development of service industry in the context of the dual transformation of China's economic system and economic development. Based on the existing research about the factors that effect on the development of service industry, we discuss several questions below with the research methods of the combination of theoretical and empirical:whether the gap of the resident's income is one of the key factor in restraining the rapid development of China's service industry or not; As the income gap getting widening, is consistent that the urban-rural income gap, the urban income gap and the rural income gap act on the development of service industry; whether the urban-rural income gap affect the most significant than the urban income distribution gap and the rural income distribution gap or not; Is inconsistent the income gap of different economic zone effecting the development of service industry with the tendency of income gap widening in China's transition; And how the conduction mechanism of the income gap works on service industry. To do these theoretical assumptions of the empirical analysis, we can examine the gap of income distribution' that impact on the development of service industry and explore the mechanism on how promoting the growth of service industry by the income distribution gap with China's institutional transition. At the same time we try to explain the theory combined with China's specific national conditions, to propose related recommendations for narrowing the gap of income distribution, with the hope to provide some reference for the healthy and rapid development of China's service industry.