›› 2018, Vol. 30 ›› Issue (5): 233-238.

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A Political Economy Perspective to See Why the Proportion of Value Added of Service Sectors Increases?

Song Jingyao1, Lin Chen2   

  1. 1. The Center for Economic Research, Shandong University, Ji'nan 250100;
    2. School of Economics, Renmin University of China, Beijing 100872
  • Received:2018-01-03 Online:2018-05-28 Published:2018-05-29

Abstract:

The proportion of value added of service sectors increases rapidly in the last decade. This paper studies the relation between income distribution and the proportion of value added. This paper constructs a regression model based on structural decomposition analy-sis to analyze the impact of income distribution structure on the proportion of value added of service sectors. The results show that 61.4% of the change of the proportion of value added of service sectors income is attributed to the change of income distribution structure. The profit level of service sectors should be well controlled to promote the development of manufacture sectors.

Key words: service sectors, value added, input-output analysis