Abstract: There is a bizarre phenomenon that the proportion of added value in the tertiary industry appeared to substantially rise under the condition of much higher growth rate in the second industry in China from 1980 to 2011. The reason is that the official growth rate of the tertiary industry in China is measured by constant prices, while the proportion of added value in the tertiary industry is measured in accordance with the current price in the very years. The reconstruction quantitative decomposition model is employed to measure and interpret the contribution of driving forces of the evolution of added value proportion in the tertiary industry in China in the time period. The result indicates that there are three factors contributing to the rise of added value proportion in the tertiary industry in the time period. The primary factor is the continuous and faster rise of the proportion of labor forces in the tertiary industry. The second factor is that the amount of increase of prices in tertiary industry is significantly higher than that in other industries. The third factor is that the sharp backward growth of productivity of labor in the tertiary industry hinders the rise of added value proportion in the industry. The sharp backward growth of productivity of labor in the tertiary industry is mainly due to excessive expansion of labor forces, mismatch of internal employment structure.
Keywords: Industrial Structure, Proportion of the Tertiary Industry, Intensity of Productivity of Labor
source:Finance & Trade Economics ,No5,2013