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This paper calculates the influence and induction coefficient based on the input-output theory, in order to evaluate the current situation of Beijing’s service industry and its effects on regional development. With online comparison, the author concludes that the service sector is getting more and more important on economic development, while the second industry is still the pillar of growth. The author also finds that the impact of service sector’s influence coefficient on the growth rate of regional economy and the scope of industry is weaker than the induction coefficient. At last, this paper shows that the fundamental compelling power for Beijing’s service development is from the demand side of market, and this gives the benchmark point for policy making in service sector.

The analysis for Beijing's service industry and its effects on regional development