Case Study Of The Modern Service Industry Competitiveness

Since the late1970s, the world has entered a period of vigorous development ofhigh-tech, knowledge-based economy is the primary factor promoting the developmentprocess: agriculture-led—manufacturing-led—the service industry-led. Now, the serviceindustry output value has exceeded60percent of the world amount of GDP, the trade ofservices accounted for the total world trade1/4; services of all consumer spendingaccounts for1/2. As a national center city, Chongqing City will be built into theeconomic center of the upper reaches of the Yangtze River, the important growth pole ofwestern region and an international city, and provide a wide, full service, improve itsservices and radiation function to the surrounding area, therefore Chongqing shouldspeed up the development of the service sector especially the modern service industry.The paper first defines the meaning and concepts of modern service industry, andin the second chapter we made the literature review on modern service industrycompetitiveness evaluation methods and modern service industry competitivenessfactors influencing, and on the basis of that, we extracted the modern service industrycompetitive impact factors to lay the foundation for the subsequent chapters thatanalyzed Chongqing modern service industry in the country’s level of competitiveness,and empirical analysis of modern service industry in Chongqing competitivenessfactors.In the third chapter the paper made the Chongqing modern service industrydevelopment status as a starting point, doing a comprehensive analysis on bothindustrial structure and employment structure, and making these four aspects of thelevel of development, basic conditions, environment and comparative advantage as astarting point to establish Chongqing City modern service industry competitivenessevaluation index system, then using the factor analysis to analyze the country’s31provinces, municipalities and autonomous regions’ rank. The results showed that, in theeastern China, the modern service industry competitiveness significantly larger than thecentral and western regions, while the gap between the central and western regions issmall. Chongqing ranked12in the list, however there is still a gap between theComprehensive Competitiveness and economically developed eastern regions, buthigher than the central and western provinces and cities.On the basis of the analysis in the previous sections, in the fourth chapter we madean empirical analysis on the influencing factors of modern service industry inChongqing competitive, and put the modern value added services and modern service industry employment as the explanatory variables to construct the model respectively.The empirical results show that there are three competitive factors for the modernservice industry in Chongqing: the first one is Chongqing’s urbanization rate, in the caseof other conditions remain unchanged, when Chongqing’s urbanization rate increasingone point, Chongqing modern value added services will increase by2.004billion RMB,and Chongqing modern service industry employment will increase by3810. The secondone is the per capital annual disposable income of urban households in Chongqing; inthe case of other conditions remain unchanged, when this factor increasing1,000RMB,Chongqing modern value added services will increase by27billion RMB, andChongqing modern service industry employment will increase by1.7million persons.The third factor is foreign capital actually utilized, in the case of other conditionsremain unchanged, when this factor increasing by$100million, Chongqing modernservice sector will grow by800million RMB, and Chongqing modern service industryemployment will increase2,000persons.Finally, on the basis of the analysis in the above section, the paper proposedcountermeasures system to promote the development of modern service industry inChongqing from government, industry associations, and enterprise.