Journal of Applied Sciences1812-56541812-5662Asian Network for Scientific Information10.3923/jas.2014.482.488DequanZheng YunlongDing 52014145The effects of increasing employment share of services on
the real GDP growth have been investigated by a series of theoretical and empirical
analysis for developed countries. In contrast, there are few empirical test
studies of such effects on macro economies for developing countries. Based on
the extended Baumols model,
this study provides an empirical analysis of the causes of employment shift
and the impact of rising share of services on the productivity growth in China.
Though the GDP share and the employment share of services has been increasing
secularly for decades in China, the growth rate of labor productivity in services
is slightly higher than that in manufacturing. The results have not confirmed
the Baumol hypothesis because
of the low labor productivity in manufacturing and large number of rural labor.
Furtherly, the regression analysis shows that there is the potential possibility
of "cost disease" in China. This study empirically tests the impact of the rising
services on the overall economy and can help to develop appropriate industrial
policies for developing countries.]]>Albin, P.S.,1970847084Baumol, W.J.,196757415426Baumol, W.J., S.A.B. Blackman and E.N. Wolff,198575806817Baumol, W.J. and W. Bowen,196555495502Baumol, W.J. and R. Towse,1997Pages: 527Pages: 527Cheng, D.Z.,2008253643Cheng, D.Z.,2010102542De Vincenti, C.,200758396412Echevarria, C.,199738431452Fuchs, V.R.,19681st Edn.,Pages: 280Pages: 280Gao, C.S. and S.T. Li,200741520Griliches, Z., T.F. Bresnahan and M. Manser,1992Pages: 560Pages: 560Haig, B.D.,1975573542Hartwig, J.,201143173184Jing, X.Q.,201163643Nordhaus, W.D.,20082008Pugno, M.,20061799115Sasaki, H.,200718438459Sasaki, H.,2012232535Solow, R.M.,19871987Spann, R.M.,19778397404Summers, R.,19851985pp: 27-48pp: 27-48Triplett, J.E. and B.P. Bosworth,200392333