At present, China's service industry plays a leading role in economic growth, and China has entered the era of service economy, but the proportion of China's service industry in GDP still has a certain gap compared with the world average level. The service industry has the characteristics of system-intensive, that is, the service industry is highly sensitive and dependent on the system. At the same time, the service industry is the carrier of the system, and the system and business environment have an important impact on the development of the service industry. Empirical research based on the "Doing Business" published by the World Bank from 2003 to 2016 shows that the institutional environment can indeed affect the proportion of the service industry in GDP. The regression results of all sample countries show that a 1% increase in the ranking of a country’s business environment can increase the country’s service industry’s share of GDP by 0.236 percentage points. Among the subdivision system indicators of the business environment, the indicators of property registration, access to credit, investor protection, tax payment, and contract execution all have a significant positive effect on the increase in the proportion of the service industry in GDP. The regression of all the sample countries shows that the development of the service industry is most affected by the indicator of investor protection. The indicator of property registration has the greatest promotion to the development of the service industry in OECD countries, and the contract execution has the most obvious role in promoting the development of the service industry in the BRICS countries. When formulating service industry policies, in addition to relaxing service industry regulations, tax incentives and other conventional policy measures, the government should also pay attention to the overall improvement of its business environment, especially in terms of property rights protection, investor protection, strengthening of contract enforcement and so on.
