An explanation of the underdevelopment of China’s service sector from the perspective of demand

The share of the service sector in China is significantly lower than that in most countries at the same level of income. Figures reveal that an insufficiency in both consumer and producer demand may be one of the reasons. We find that the demand insufficiency mainly stems from high consumer preferen...

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Main Authors: Fan, Wenjing, Pan, Jiadong, Zhou, Minghai
Format: Article
Language:English
Published: Taylor & Francis 2019
Subjects:
Online Access:https://eprints.nottingham.ac.uk/56619/
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author Fan, Wenjing
Pan, Jiadong
Zhou, Minghai
author_facet Fan, Wenjing
Pan, Jiadong
Zhou, Minghai
author_sort Fan, Wenjing
building Nottingham Research Data Repository
collection Online Access
description The share of the service sector in China is significantly lower than that in most countries at the same level of income. Figures reveal that an insufficiency in both consumer and producer demand may be one of the reasons. We find that the demand insufficiency mainly stems from high consumer preferences for saving and China’s export-oriented trade structure. These excessive saving tendencies limit consumer demand for service products and thus hamper the development of consumer services in China. The rapid development of the processing trade also impedes the interrelation between the domestic manufacturing and service industries, reduces the effective demand for local producer services from the manufacturing industry, and ultimately restricts the growth of the producer service industry in China.
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spelling nottingham-566192020-10-04T04:30:13Z https://eprints.nottingham.ac.uk/56619/ An explanation of the underdevelopment of China’s service sector from the perspective of demand Fan, Wenjing Pan, Jiadong Zhou, Minghai The share of the service sector in China is significantly lower than that in most countries at the same level of income. Figures reveal that an insufficiency in both consumer and producer demand may be one of the reasons. We find that the demand insufficiency mainly stems from high consumer preferences for saving and China’s export-oriented trade structure. These excessive saving tendencies limit consumer demand for service products and thus hamper the development of consumer services in China. The rapid development of the processing trade also impedes the interrelation between the domestic manufacturing and service industries, reduces the effective demand for local producer services from the manufacturing industry, and ultimately restricts the growth of the producer service industry in China. Taylor & Francis 2019-04-04 Article PeerReviewed application/pdf en https://eprints.nottingham.ac.uk/56619/1/An%20Explanation%20of%20the%20Underdevelopment%20of%20China%27s%20Service%20Sector%20from%20the%20Perspective%20of%20Demand.pdf Fan, Wenjing, Pan, Jiadong and Zhou, Minghai (2019) An explanation of the underdevelopment of China’s service sector from the perspective of demand. Emerging Markets Finance and Trade . pp. 1-16. ISSN 1540-496X final demand; intermediate demand; service sector http://dx.doi.org/10.1080/1540496X.2019.1601078 doi:10.1080/1540496X.2019.1601078 doi:10.1080/1540496X.2019.1601078
spellingShingle final demand; intermediate demand; service sector
Fan, Wenjing
Pan, Jiadong
Zhou, Minghai
An explanation of the underdevelopment of China’s service sector from the perspective of demand
title An explanation of the underdevelopment of China’s service sector from the perspective of demand
title_full An explanation of the underdevelopment of China’s service sector from the perspective of demand
title_fullStr An explanation of the underdevelopment of China’s service sector from the perspective of demand
title_full_unstemmed An explanation of the underdevelopment of China’s service sector from the perspective of demand
title_short An explanation of the underdevelopment of China’s service sector from the perspective of demand
title_sort explanation of the underdevelopment of china’s service sector from the perspective of demand
topic final demand; intermediate demand; service sector
url https://eprints.nottingham.ac.uk/56619/
https://eprints.nottingham.ac.uk/56619/
https://eprints.nottingham.ac.uk/56619/