China's Service Trade Spillovers

The development of trade in service, which is an important part of the service economy, is one of the major events of the world economy. With the gradual growth of trade in services, countries have undergone significant structural changes in area of foreign trade and economy and its development will eventually have profound impact on all aspects of economic growth and social development. It is precisely because that effect of trade in services is gradually expanding; theorists and some related policy-decision making departments invested much time on research of the role and impact of trade in services, and have made a lot of insightful discoveries. However, research from the angle of spillover effects of trade in services is still in its initial stage of development, let alone that combined with endogenous growth theory to explain. It is very because of increasing role of trade in services in the comtemporary economy, that it has a significant sense to research it from the perspective of endogenous growth, and this is a great unique point about this dissertion.According to endogenous growth theory, the factors that lead to economic growth comes from its own internal mechanism of economic development, thus various endogenous growth models have included those factors of economic growth in itself which is no longer like models before taking them as exogenously given. In addition, development of the theory of economic growth have expanded the comtents of "A" in the Cobb - Douglas production function。To date, technology, human capital and institutions are the major recongnized constituents of the total factor productivity, ie,"A". Therefore as an important process of economic development activity, services trade will inevitably have a great influence on"A", whether as a result or cause of its "A". And in some countries or regions, the effects may be greater. Therefore, we may discover the effect of trade in services through its linkage with technology, human capital and institutions, and it will ultimately affect the economic growth by means of market and social mechanism. Thus the growth of trade in services becomes great economic force on the endogenous total factor productivity. Therefore, trade in services as a thrust of endogenous growth is the central idea of this article.Based on the above ideas, the first chapter of is to systematically formulate the research background, relevant research and the full framework we are going to build our structure; the second chapter starts with some explanations about trade in services and related knowledge, and then outlines the development of China's service trade, and by taking Chinese for the specimens studys the relationship between trade and economic and social situation, paving the way for the following further study; Chapter Three splits total factor productivity into three parts of technology, capital and institutional, and strictly discussed the relationship of each of them with trade in service with empirical method, to testify the spillover effects. At the capital section, we first divide it into material capital, human capital and social capital and then discussed respectively whether trade in service have a enhancing effects on each of them; IV, taking into account different industries and modes of trade in services, we first analyze its spillover effect by breaking it down into three section based on particular nature of industry, then followed by discussion of the different spillover effects under the four modes of trade in services; The fifth chapter based on the consideration that spillover effects of trade in services must be reflected in certain practical areas, therefore we try to study in depth the actual effects by trade in service on astotal factor productivity, trade in goods and producer services. Only when the role of spillovers is discovered in the practical field, the forgoing theoretical research can be testified and we regard that it does exist; Chapter VI is the conclusion section, we propose some suggestions and some ideas for further research in future.