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Abstract This paper investigates the relevance of per capita GDP and the share of service sectors employment based on the threshold regression model, and applies the per capita GDP as the threshold variable. The result indicates that per capita GDP is positively correlated with the proportion of service sectors employment at any stage of development. The result got from SFA model shows that service industry development can promote the efficiency of the national economy through absorbing employment and improving the efficiency of related industries. Statistical analysis shows that the current low proportion of China’s service industry is not a normal phenomenon. The conclusion is verified by the facts that the service industry development is lagged and we should pay more attention to the negative effect of this phenomenon and take some efficient measures.
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Received: 01 March 2010
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2010, Vol. 1 
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