Countermeasures Of Local Government In Promoting The Development Of Service Industry

The proportion of Service Industrial within total GDP is an key element to determine the level of economic development of a country. According to the Theory of Economic Development Stages, it is the only way followed by a country, which takes Agriculture as its main producing department before Manufacture and Service Industries at last.Since 1970s, the industrialized Western countries started to speed up industry-upgrading. The proportion of Service industries within GDP kept going up. The rapid development and full-scale application of information technology during 1990s, which urged the rearrangement of produce elements, has accelerate the trend. Over 60% of the GDP and employment is offered by Service Industries in the Western countries. In the meantime, new mode of service business kept coming up. The Producer Services, such as finance, insurance, trade, education, medical service, has been the key driver of economic increasing and competitive power.In the past 3 decades, China' s economy has kept rising by reforming in micro-sector and adopting an export-oriented economic strategy. With the rapid expanding economy and urbanization, the pressure of environment and resources began to emerge, together with the trade conflict. It' s urgent for China to upgrade its industries and to transform its way of development, which will help to restructure is economy. But as having introduced an extensive mode of economic expanding, whose increase was most brought by investment and export, China needs more experience and more efficient measures to stimulate the development of Service Industries.As the major part of Shanghai, the most-developed city of China, Pudong New Area has finished the construction of its infrastructure. The economic structure of Service, Manufacture and Agriculture has formed. The Industrial-upgrading has just begun. The proportion of GDP shared by Service Industries keeps increasing. Corresponding measures should be taken to redefine the economic management function of local government.The study will review the former researches on the topic of development of Service Industries and distinguish the related definitions. By using viewpoints of the Theory of Economic Development Stages, Institutional Economics and the successful practice of Singapore and Hongkong, the study will also look into the deficiency of Pudong New Area' s local government and bring forward the policy suggestion.