Service Industry Development and Financial Support in Northeast China Based on Co-Integration Analysis

Based on the data of 1978-2007, the relationship between service industry development and financial support in northeast China is discussed by co-integration analysis and Granger causality test. We can conclude from the results of the empirical analysis that there exists long-term dynamic equilibrium interrelation, and that there is one-way Granger causality between the two, namely financial support is indispensable to service industry development in northeast China, which is helpful to the economy development and decision-making of the government.