Abstract: In order to analyze whether the investment on service industry is efficient under the background of sustainable growth of the service industry output share of GDP and the total amount of investment in service industry. This paper uses historical data from 1985 to 2011 to construct a series of indicators, including the service industry investment, production, employment, wage income and urbanization, and uses the 2003-2010 provincial panel data to conduct a regression analysis. Research shows that: compared with primary and secondary industry, service industry has high capital consumption; transportation, storage, postal service and real estate have low efficiency of investment. Considering regional differences, the investment efficiency of east regions is higher than that of central and west regions. This phenomenon is caused by not only accounting system defects, but also the unbalanced development of regional economy, and the industry’s own characteristics and current system are also obstacles.
Keywords: Service Industry, Revised Data, Panel Data Model, Investment Efficiency
source:Finance & Trade Economics ,No.3,2013