The empirical analysis on Chinese service sector's innovative development and economic growth

China has made a great progress in service industry since 1978, and it not only has become one important factor that determines the national comprehensive competitiveness, but also become one of the important signs that determine national economic modernization level. According to the statistics (1978-2010) of China's Gross Domestic Product and the Added Value of the Tertiary Industry, the paper applies significance test, stability test, unit root test, co-integration test, Error correction model, Granger causality test on the relationship between economic growth and China's service sector. We get the following conclusions: a) The influence between added value of China's service industries and GDP growth is significant, and there exists long-term equilibrium relationship between them; b) It has the causality between the development of China's service industries and economic growth.