Yilan County leans against hills and faces the ocean, and only a mountain separates it from Taipei City, the capital of Taiwan. However, traveling from Yilan to Taipei, or vice versa, takes 2 hours. The long transportation time limits the development of the service industries of Yilan. National Highway No. 5 (Taipei-Yilan Highway) connects Taipei and Yilan; and since its opening to traffic in June 2006, the traveling time between these two locations has been reduced to 40 min. In addition to improving convenience in travel, this major transportation construction, which took 8 years to complete, has already induced changes in the service industries of Yilan.
This study aims to analyze the industrial transition of 12 service categories by collecting relevant data 5 years before and after the operation of National Highway No. 5 to traffic. The purposes of this study include: (1) Testing the significance of the overall commercial scale, the population employed, and the revenue structure; and (2) analyzing the changes and trends of the 12 service industries and productivities. The results of the analysis are used to discuss how major transportation constructions have a significant impact on the transformation of local service industries. The results can also be used as a reference for local governments in developing policies to promote the productivity of the service industry. Finally, the results of this study are expected to be used as a reference for undergoing major transportation constructions in cities, and for subsequent academic research.