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Official Term, Official Exchange and the Development of Service Industry:Observation from the Data of 1994~2012

Liu Sheng;Gu Naihua;  
Using a provincial panel data between 1994 and 2012,which covers detailed information for all the provincial governors(including provincial party secretary, mayor for municipal cities, and chairman for autonomous regions), we made an empirical research to test the impact of the provincial governors ' tenure and rotation on the development of service sector. As the results showed that, a positive impact on local service sector development is found for both term limits and rotation of governors across regions. It also finds that there is an inversed U relationship between term limits and service sector development. Rotation also has a positive impact on service sector development, but varies across different regions. Based on these, we proposed some policy suggestions. First of all, the central government should give the provincial governors clear incentive target and career guidance in a steady tenure. Furthermore, the short-sighted and formalistic behavior of the rotated governors should be avoided.
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