Research On Knowledge-based Trade In Service And Economical Growth Under Open Economy

Scientific and technological development and application have changed the ways of international trade in services, its content and composition. The main contents of trade in services is shifting from the traditional fields as transportation and construction to the emerging fields of knowledge, technology and data processing industries.That the rapid growth of knowledge-based trade in services and its rapid increase and share in international trade and world economic development is typical characteristics of modern economy.The development of trade in services is the transformation of trade growth and strategic choice of trade structure.The positive impact on economic growth ofdeveloping knowledge-based trade in services and promoting the long-term economic growth has been experienced by some developed countries and is confirmed by their experience.Under this context,China's "11th Five-Year Plan" puts forward a comprehensive change in the mode of economic growth and change the growth mode of trade.However, the development of China's foreign trade isimbalanced that trade in services especially knowledge-based trade in services is lagging far behind the development, with a low proportion and a huge deficit.China's service trade sector is still focused on the shipping, tourism and other traditional areas, while such knowledge-based services as finance, insurance, computer services are still suffering low competitiveness.This paper focuses on making scientific and forward-lookinganalysis on the mechanism and ways of knowledge-based trade in services promoting economic growth;the environment, characteristics and prospects of knowledge-based trade in services in the world; the current situation of China's knowledge-based service trade;international competitiveness and determinants;knowledge-based trade in services and economic growth, FDI in knowledge-based service industries and development of trade in services. to It hopes to provide theoretical and empirical experience for the development of China's knowledge-based services trade, the transformation of China's trade growth pattern and sustainable and balanced development of foreign trade.In Chapter III,it first makes an an overall presentation of the definition, basic features,theoretical basis and international situation and prospects for the development of knowledge-based services and knowledge-based trade in services. In the fourth chapter on the bases of literature review of knowledge-based trade in services and factor market , economica growth under endogenous innovation of knowledge-based services,it establishes a model to analyse the mechanism and ways of knowledge-based of trade in services on economic growth.The conclusions are:a knowledge-based services as intermediate inputs for production has increasing returns to scale; its trade will increase the possibility of production for every country; and countires'productivity will increase with the increase of knowledge-based trade in services.More movement of Knowledge in both domestic and cross-border will expand the stock of knowledge; more knowledge-based services will be produced to improve productivity; endogenous economic growth will continue;it led to high-speed rate of innovation to sustain quick and steady the world economic growth.And in the absence of a knowledge-based trade in services, the international flow of knowledge would lead to duplication of research and reduce long-term innovation and growth. the higher degree of duplication of research between two countries, the lower earnings of international movement of knowledge, the long-term innovation and rate of growth of these two countries are also lower.Therefore, eliminating free flow of knowledge andknowledge-based restrictions is of great significance to development of knowledge-based trade in service and economic growth. In order to encourage knowledge-based services and knowledge-based trade in services, government can subsidy research and knowledge-based services as the middle input of production to correct market distortions.In the fifth chapter on the bases of analysis of China's service trade development and the overall status and development problems of different sectors ofknowledge-based services.It empirical analyses the international competitiveness of knowledge-based trade in services of China using NTB, RCA and NXRCA index to measure the status in the international market and studies the determinants behind competitiveness including producing factor, demand, relevant industries, strategies, structure and competition of enterprises, opportunity and government.China's international competitiveness of knowledge-based services is relatively low, especially in the finance, insurance, patents, consulting services, audio-visual films such high value-added knowledge-based field.The gap between China and the world's major developed countries is still great.Transferring trade growth mode is to shift from extensive growth to intensive growth. On the analysis of China's major problems in trade growth mode and the adverse effects of the current trade growth mode to the sustainable development of of trade and economic growth, it proposed that developing knowledge-based trade in services is an important way to transfer trade growth mode and promote sustainable economic growth.In the sixth chapter, it empirically researches China's knowledge-based trade in services and economic growth, and analyzes the main problems in the development. By analyzing relations between import and export of the knowledge-based services trade and short-term and long-term GDP growth, it makes a conclusion that the export of knowledge-based trade in services contributes most for economic growth.but at present China's overall level of trade in services is still low; mainly exports low-end traditional services. In order to shorten the gap between China and the developed countries, we can only rely on the export of knowledge-based services to foster economic growth.China's knowledge-based industries and services are developing and inbalanced. To develop knowledge-based services in Chinese , it is necessary to follow comparative advantage, but also to create a competitive advantage;The model of developing knowledge-based trade in services is necessary to consider the appropriate protection for domestic knowledge-based services industry, and consider full use of international industrial transfer to realize the the dynamics of graft and industrial upgrading of domestic industries and foreign industries.In Chapter VII, policy recommendations on developing China's knowledge -based service industry and service tradeare provided from opening of knowledge-based trade in services under moderate protection and gradually open the domestic market; promoting the development of a knowledge-based service industries, optimize the industrial structure of domestic service; enhancing the effect of FDI to China's knowledge-based trade in services;increasing R & D investment in human capital and foster competitive advantage of knowledge-based trade in services;leading China's service industries to foreign investment andpromoting international operations;speeding up the establishment of law, regulations and management system that suit our condition with Chinese characteristics...