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郑江淮
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Convergence and Heterogeneity
:
Trend in Service Industry Development
ZHENG Jianghuai
(
Nanjing University
,
Nanjing
,
Jiangsu 210093
,
China
)
Abstract
: Both theoretical and empirical analyses show that the process of economic development in the three industries
converges to aservice鄄oriented structure. The overall development of service industry exhibits a transitional characteristic from a
parallel development of manufacturing industry and service industry in the first stage to a decline in the proportion of manufactur鄄
ing industry and a continued rise in the proportion of service industry in the second stage. The inner dynamics of the development
in service sector derives from two main factors: technological progress and income鄄demand elasticity. The technology revolution
causes the differences in the growth rate of labor productivity among major sectors within the industries, which induces labor
transfer and reallocation among various sectors. Meanwhile, the increase in per capita income leads to service demand at more
levels. The difference in system and policy of various countries results in the difference of allocation cost in labor department,
which causes the heterogeneity of industrial structure under the same technological progress. The development of service industry
needs a market environment which encourages competition, a free entry and exit system of both labor market and product market,
and a more open trade in services and investment.
Key Words
: service industry; convergence; heterogeneity; technological progress; labor productivity; industrial structure
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