Comparison of Growth Efficiency Between Manufacturing Industries and Service Industries During 1992～2002 and Its Policy Implications

This paper aims at the comparison of growth efficiency between manufacturing industries and service industries. A SFA model is developed to describe the growth traits of manufacturing Industries and service industries over the period of 1992 ~ 2002. And then, a model reflecting the external effects between industries is used to analyze industrial policy. The main results show that that there is a remarkable growth efficacy between manufacturing industries and service industries. Because the external effects of service industries are stronger than that of manufacturing industries, the policy to develop service industries more quickly is still appropriate.