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Abstract Based on the input-output tables in China and USA in different years, this paper finds that the ratio of service input in the manufacturing sector, service sector, personal consumption expenditures and government expenditures of USA keeps rising since 1972, whereas the ratio of service input in manufacturing sector in China keeps going down since 1992. That means the growth of service sector in China lacks strong demand from manufacturing sectors, and that is the main obstacle which limits the further development of production services in China. Therefore, improving the status of China in international division of labor among industries, furthering the reform of service mechanism and system and to create better market environment should become the priority in policy-making.
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Received: 15 February 2012
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Corresponding Authors:
CHEN Kai
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2012, Vol. 1 
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