Puzzle Developing China's Service Economy: Investment Pitfall after Specialization Trap?

摘要

Service economy is nowadays a frenzied topic amongst industrial, academic as well as political fields. This paper recapitulates the significance of service economy and summarizes the economic property of China's service sectors via an empirical methodology. Moreover, after statistical analyzing, the paper points out two interesting facts not carefully studied to date around China's service economy, namely they are per capita service productivity advantage over United States and FDI dilemma in the process of transforming China's economy from a manufacturing focused type towards a service dominated mode. Though detailed explanation towards these two outcomes is not studied herein, the work of the paper will be beneficial for future work in this respect.