Institutional Innovation and Development of Service Sector: An Empirical Study Based on Panel Data from China

摘要

Based on the panel data of China's 31 provinces, municipalities and autonomous regions in 2005-2008, an econometric analysis reveals the factors influencing the development of service sector of China. According to the analysis, marketization imposes significant positive impact on the development of service sector. Therefore, institutional innovation should be actively performed, and the process of marketization should be promoted, thus the development of service sector will be accelerated. Furthermore, this paper discloses that the root leading to the low level of marketization is the irrational regulation policy. So the reform of service sector's marketization should be establishing an open, transparent and unified market-entry policy.