An Empirical Analysis of China's Service Sector and Economic Growth -Based on State Space Model

摘要

World economy has come to the time of services economy. After 30 years' open up and reform, China's services industries have made a big progress. Using State-Space Model and Kalman Filter, the author made a deep analysis of the relationship between China's service industry and economic growth. Test results are as follows: (1) there isn't a time-varying co-integration relationship between GDP and services industries; the time-varying equilibrium has a steady increasing trend. Based on the analysis, the author put forward some suggestions on the development of China's service industry.