The Liberalization Of International Trade In Services Research

Service is a controversial concept in economics, and many issues concerning the basic theory and practical performance have not been yet solved. Classical economists believed that there are essential differences between service industry and material production departments. With the economic development and social progress, the essential differences have become more and more obscure in the modern economic life. Petty-Clark theory shows that service industry is playing such an increasingly important role in the modern economic life that it is believed that "service society" is coming. With the center of world economy leaning to service trade and contribution to economy made by service being gradually recognized, especially in the late half century after World War Two, service industry has become the engine for economic development of the country. International trade in service is booming while the effect it has on the world economy is deepening. The intensified liberalization of international trade in service gives prominence to the effect of international trade in service so as to make it an important representation of service industry and economic competitiveness.The liberalization of international trade in service refers to the process in which the government gradually lessens the administrative interference in the flow of service and of the staff, capital, goods and information concerned among countries and .relaxes foreign trade control through the way of national legislation and international agreements to optimize resource allocation and maximize economic benefit. It is a state of gradual relaxation of the government control on foreign trade. Theoretically, liberalization of international trade in service is a way to raise efficiency but in fact it will more probably produce gainers and losers. Though gainers may compensate the loss of losers to improve the whole welfare, realization of this compensation policy is usually complicated and controversial. Liberalization of international trade in service covers full ranges of trade forms on the face but the most concerned forms for developed countries are the fast growing parts in international trade in service such as banking, insurance, telecommunication,...