The Research On Development Of Shanghai's Service Industry

The 21st Century is the century of city economy, and the city economy means service economy. The development of service industry, which is also called the second industry, is key criteria of the development standard of a country or an area. It has been proved by the international experienced as well as the development of our county that the healthy and corresponded development of service industry is very important to the optimization and upgrading as well as the enlargement of the labor market. Nowadays, service industry has counted for 60% to 70% of western counties' economy. However, although Shanghai's service industry has been developing fast, it only accounts for about half of the city's GDP, which is far way from the standard of Hong Kong and other international cities. Therefore, it's very important for the optimization of Shanghai's industry structure and the establishment of Shanghai's "Four Centers" to make service industry as priority in the economy.This paper is based on some theories of economic growth, service industry, and the theory of city's basic economic activities. Some study methods have been taken in this paper such as dynamic state analysis, comparative analysis, econometric method, factor analysis, and other methods to give a comprehensive empirical analysis on the economic growth of Shanghai's service industry. Corresponding suggestions are provides according to the analysis above and the next five year plan of economy development of Shanghai, that service industry should be the priority of Shanghai's economy development. Suggestions are also provided in order to develop service industry from some aspects as harmonizing the relationship of industries, institution innovation and promoting industrial competitiveness.