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Economic Transition, Urban Hierarchy, and Service Industry Growth in China

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  • Yun Zhong
  • Yehua Dennis Wei

Abstract

The service industry in China has been undergoing rapid growth, especially since the early 1990s. However, little research has been conducted regarding its characteristics, spatial patterns and dynamics. Based on the theories of economic growth, economic transition and urban hierarchy, this paper develops an analytical framework for elucidating the growth of the service industry in China. We find that cities with a high increment in the service industry tend to be located in coastal areas, and mainly constitute megacities and large, highly developed cities. Cities with higher administrative rank, such as centrally administrated municipalities, cities designated in the State Plan and provincial capitals, maintain relatively high growth in the service industry. It is concluded that China's economic transition and urban hierarchy play significant roles in the growth of the service industry, suggesting that service industry growth in China does not strictly adhere to growth patterns observed in Western countries.

Suggested Citation

  • Yun Zhong & Yehua Dennis Wei, 2018. "Economic Transition, Urban Hierarchy, and Service Industry Growth in China," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 109(2), pages 189-209, April.
    • Handle: RePEc:bla:tvecsg:v:109:y:2018:i:2:p:189-209
    DOI: 10.1111/tesg.12276
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    References listed on IDEAS

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    Cited by:

    1. Jin, Wanfu & Zhou, Chunshan & Zhang, Guojun, 2020. "Characteristics of state-owned construction land supply in Chinese cities by development stage and industry," Land Use Policy, Elsevier, vol. 96(C).
    2. Vusal Murselzade & Behiye Cavusoglu, 2021. "Relationship between the Service Sector and Economic Growth: Evidence from China," Asian Journal of Social Sciences and Management Studies, Asian Online Journal Publishing Group, vol. 8(1), pages 15-22.

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