The Analysis On The Spillover Effect Of Service Industry In Relation To Industry Sector In Chongqing

The service industry of Chongqing specific rises from 17.4%in 1978 to 35.7%in 1997;the structure of service industry by Chongqing in 1998 are 38.1%,rise to 41.0% when arriving at the end of 2005.Service industry has gained the speedy development. This index about Chongqing is still comparatively low.We can see from the research on the industry structures of some developed countries that the proportion of added value of service and employment is much bigger than the industry. Service will play more and more important role in the development of economy in each country, the development and the competitive ability of service can reflect the potential of the economy of one country in the future. We need to think over the development of service,its reason and history ,especially the connection between the service and industry and do more research about it. Chongqing As a bridgehead and an economic center in West China, it should provide its surrounding areas with the full range of services, upgrade its services and radiation, so, it necessary to accelerate the development of the service industry, especially the modern service industry. This Paper,takes the situation of Chongqing as an example,to do some empirical analysis about the latent spillover effect exists in the industrial sector,and helps to recognize the important role of service industry.First,based on the two -sector model, this paper analyses the spillover effect of service industry. By using the Chongqing's panel data between 1998—2008,our estimations shows that the spillover effect of service industry in relation to industrial sectors is obviously and is going down. Service, especially productive services development should be vigorously.With the data from the 1998 to 2008, we did an empirical analysis for the purpose of reflecting the dynamic changes of the spillover effect which the service industry brings to the industrial sector. we concluded some specific suggestions on how to improve industry growth through service industry.