Studying the Connection between the Growth of Chinese Service Industry and the Upgrading of the Consumer Structure under the Background of Supply-Side Structural Reform

Abstract

In a new era of economic development, the growth of the service industry has made a lot of progress, and the consumption pattern of residents has also changed. Consumption has shifted from subsistence to development, and then to enjoyment. In contrast, China's service industry is obviously in short supply, thus there is a clear imbalance between the supply and demand structures. Currently, balancing consumption demand and service industry supply is imperative. China is vigorously promoting supply-side structural reform. In the background of supply-side structural reform, in order to better adapt the development of the service sector to the changes in the consumption structure, this paper presents an empirical analysis of the relationship between the consumption structure and the development of the service sector based on data from China for the period 1991-2020, studies the current situation and development trend of China's consumption, analyzes the problem of insufficient supply of service industry. The conclusion is that there is a long-term stable relationship between the consumption structure and the development of the service industry, and the change of the consumption structure can promote the development of the service industry. Based on this, we propose relevant policy recommendations for the development of the service industry and the promotion of the upgrading of urban and rural residents' consumption. This is of great significance for promoting the development of China's economy, promoting the transformation and upgrading of China's consumption, and is also conducive to the development of China's service industry towards high-quality development. At the same time, it also provides some reference for the relevant research and practice of developing the service industry and promoting consumption upgrading in the world.