The study analyzed changes in productivity in China's service industry from 1978 to 2007. It found that productivity growth in the service sector has been declining over time, with distinct stages of growth in the 1980s, 1990s, and recent years. The increase in capital investment has played a significant role in the sector's growth, while the contribution of productivity growth has decreased. There are also noticeable differences in productivity growth between the East, Central, and West regions of China, with varying effects of technological progress and efficiency on productivity growth in each region.