Finance And The Development Of Service Industry

The development of Services is an ultimate symbol of the economics. The study of the factors influencing the development of Services remains the focus of the academics. Based on the former researches by others, this thesis attempts to discuss the factors causing the development of Services from the perspective of finance. The first, according to the theory of Functional Finance and the Services Outsourcing Theory, this thesis analyzes the mechanism between the financial department and the service industry on both the micro level and the industrial level. The second, in order to further the study, the thesis analyzes how the finance affects the growth efficiency of the Services and the evolution of its internal structure from the aspect of the stock market and of the bank structure respectively. The stock market can affect the transformation of the service enterprises in the level of the management. In other respect, due to cost differences, banks of different scales results in the division of work, which can affect the evolution of the Services' internal structure. The last, after studying briefly on the development of China's finance and service, the thesis sets three empirical models to test the validity of the theory, using groups of panel data and time series data to conduct the analysis of econometrics. The results are:the development of the financial department accelerates the increase of the service significantly; the effects of the enlargement of China's stock market and of the improvement of the trade efficiency on the service development are positive; the small and medium commercial banks'increases in market share help the industries whose average scale is small raise their proportions in service. Concerning the positive influences of the financial department on the development of the service, this thesis proposes that the reform of the financial system should be continued and that the rules and regulatory system of the stock market should be perfected, improving the marketing level of banks, providing service with various financial products, and accelerating the pace of China's service development.