Evaluation of Modern Service Industry Under Economic Transformation Based on Catastrophe Series Method

Abstract

With the proportion of the service industry market increasing, there is an imperative need to explore how to develop and innovate the service industry in an economically stable environment. To solve the comprehensive evaluation issue of the modern service industry and determine the key influencing factors, a comprehensive evaluation system for the development capability of the service industry was established. Firstly, the entropy method was adopted by this research to empowerment the various indicators. Secondly, the research used the principal component analysis method to determine the correlation between these indicators. Thirdly, catastrophe progression method was applied to the classification and indicator level calculation of indicator system. Finally, a case study is tested to validate the effectiveness of the model. The results show that the fluctuation of the development environment has a great impact on the development capability of the service industry. And the policy and force majeure are two major factors in market volatility. Finding and circumventing negative influences has become the key to improving the service industry in the context of economic transformation.