Chongqing City, Modern Service Industry Competitiveness

At present, China is in the period of transforming from the industrial economy to aknowledge-based economy. Modern service industry has gradually become an pillarindustry in regional economy developing, which has advantages as high economy effect,less consumption, high technology content, strong driving force and lower pollution, etc.The development of modern service industry has become an important standard toweigh the regional economic development. As the only municipality in West China andnational coordination of urban and rural synthetically reform testing district, Chongqingis working in building itself into the important growth pole of the western China, theeconomic center of the upper reaches of the Yangtze River and a municipality withbalancing urban and rural development. To this Chongqing must improve the strategicadjustment of the economic structure, develop modern service industries vigorously,enhance the competitiveness of modern service industry, then become the highland ofmodern service industry in western area.Based on the theories of industrial economics, econometrics and institutionaleconomics, the paper uses the method of combination of qualitative and quantitativeanalysis to research on the competitiveness of Chongqing modern service industry. Andthen the paper puts forward countermeasures on upgrading competitiveness of modernservice industry in Chongqing.Firstly, the paper summarizes the advances of modern service industry at home andabroad. In Chapter Two, this article combs the theories about modern service industryand industry competitiveness, clear about the connotation, features, factors and category,including studies range of industry competitiveness about modern service industry. Thepaper establishes an intellectual system of constructing the evaluation index system ofmodern service industry from six aspects: economic foundation, common environment,the overall scale, growth capability, development potential and the growing of the majorbranches. This lay the foundation for appraises the competitiveness of service industryand analyzing the factors which affect the competitiveness level of Chongqing modernservice industry.From both general empirical and industry-based empirical perspective, the paperanalyzes the development of Chongqing modern service industry and ranking31provinces by using factor analysis. The result shows the ranking conforms to thesociety’s level of economic development basically. Chongqing is6th in the rankings because of fast growth speed of modern service industry. On the whole, thecompetitiveness level of Chongqing modern service industry has a big gap with easterndeveloped regions.Based on the previous analysis, the regression models are set up, which includedependent variable of the growth of modern service industries of GDP. It studies thefactors of the competitiveness level of Chongqing modern service industry. The resultsshow the low output infrastructure investment of total investment and personal savingsare positively associated with dependent variable, as well as urbanization rate isinversely associated with it. Finally, the paper puts forward countermeasures fordeveloping modern service industry combining with the Chongqing practical situationfrom two aspects.