The Formation Mechanism And Empirical Research Of The Mismatching Of Service Industry Elements In China

November 10,2015,On the eleventh meeting of central finance leading group,President Xi puts forward the concept of" supply-side reform ".It requires that" In the moderate expansion of aggregate demand at the same time,efforts to strengthen the supply side structural reform,and to improve the quality and efficiency of the supply system,enhance the driving force for sustained economic growth." This means that China's traditional extensive mode of economic development,driven by factor inputs,has been unable to meet the requirements of the current economic development.To promote the rational allocation of factors,accelerate the improvement of total factor productivity,has become the key to the development of China's economic restructuring.From another perspective,the development of modern service industry in our country is more and more important.The voice of development of service economy and speeding up the promotion of economic services are getting stronger and stronger.If the factor allocation and the development of service industry are considered together,we need to understand is that,under the premise of limited resources,what is the true factors allocation relationship between the service industry,and this relationship has a significant positive effect on the overall efficiency of national economic or not?In essence,analyze these problems and find the crux not only has the meaning for the healthy development of service industry,but also for promoting industrial and service coordination,promoting economic transformation and upgrading.Based on this,after the comprehensive review of domestic and overseas researches,I found that many domestic and foreign scholars generally believe that the Chinese factors misallocation has significantly hindered TFP and output growth,factors misallocation of service industry leads to its total factor productivity growth rate very low or even negative.So,how the factors misallocation of the service sector is formed?Placed in China's national conditions,what is the uniqueness of this mechanism?In particular,what is the statistical and theoretical relationship between the service sector and industry in China?And after identifying the link how to solve?This is precisely the question which this article must focus on.Specifically,Firstly,it clarifies the core connotation and theoretical reasons of the factors misallocation.About the factors misallocation of service connotation and formation mechanism,firstly,the paper gives dual connotation of service factors misallocation through the derivation of the basic assumptions of economics,single factor misallocation lead to intra industry itself can not achieve the goal of maximizing profits,inter industry factor misallocation cannot lead to the realization of Pareto the best of the economy.Then,based on the premise of reference to related research,with the background of economic transition,this paper proposed the formation mechanism of China's service industry factors misallocation.It mainly includes:the path dependence of initial system;the principal agent problem of the relationship between central and local governments;the competition among local governments,and we prove it through the evolutionary game model.Second,the measurement and characteristics of the factors misallocation between China's service industry and industrial sectors.Analysis on service industry factors misallocation situation is based on the service factors misallocation connotation as the theoretical foundation,the Cobb Douglas production function as the basic assumptions,the intra industry and inter industry with absolute misallocation and relative misallocation estimating found:In current situation,China's service industry has absolute factors misallocation with the lack of capital and the surplus of labor;About the relative misallocation,China's service industry reflects the typical characteristics of excessive capital and labor shortage,and at the same time,the second industry has absolute factors misallocation with the lack of capital and the lack of labor,the result region level has a certain degree of heterogeneity,but the overall pattern unchangedThird,the relationship between factors and causes of industry and service industry misallocation.Analysis of the formation mechanism of the empirical research and service industry based on the factors misallocation,we sums up four kinds of matching relationship between China's service industry and industrial mismatch,and through theoretical deduction shows that labor industry segmentation and government behavior led to the labor factor misallocation within the industry and inter industry;Excessive lowering interest rates accelerated industrial and service capital deepening behavior led to the misallocation of capitalFinally,the paper puts forward the corresponding countermeasures and suggestions to solve the problem of China's service industry factors misallocation in combination with the above research and the characteristics of China's economic development.