The Research Of International Services Trade Effects On Factor Income In China

Since the 1980's to 1990's, with the development of globalization and the deepening of international division, the international services trade has growing rapidly and the services trade has becoming one of the important metrics of a country's overall national strength and competitiveness. China's service trade, though started late, has been expanding in recent years and the structural of services trade has changed profoundly. The services trade in China has becoming an important component of China's foreign trade. In the international arena, China has changed from a small country of services trade to a major power in services imports and exports, the world rankings also increased rapidly.At the same time, different from the trade in physical goods, trade in services is a service cross-border movement, which is the international mobile of labor, capital and other factors in different ways and carriers among countries in the world. Then, the relative impact of Services trade to factor income is more direct and profound. In particular, as a country of labor abundance and capital, knowledge, technology and other factors scarce, the impact of services trade on factor income of China is directly related to the competitiveness and the efficiency improving ways of services trade.Theoretically speaking, the income effect of trade has always been an important part of trade theory, some theories like S-S theory and Factor Price Equalization theory which are based on the traditional trade theory and Brown Model based on New Trade Theory are all deeply analyzed the influence of services trade to factor income.Generally, it is believed that the trade theory is basically applicable to services trade analysis.However, there are special natures of trade in services, such as intangible, synchronization and subjectivity and so on. Then there is certain theoretical value in studying the impact of services trade on income factors from the point of characteristics and causes of servicestrade.Therefore, based on summary and comparison of the existing factor income trade theory, the dissertation deeply analyze the services trade impact on factor income from the perspective of production-sharing inner companies and propose three action mechanisms, that is factor productivity mechanism, factor demand mechanism and product relative prices mechanism. On this basis, combined with the real status of China's services trade the factor income, the study discuss the inherent relationship between China's services trade and the income of skilled-labor, unskilled-labor and capital using data. Combined with theoretical models, the article discusses the productivity mechanism deeply and calculates the income elasticity of China's services trade and the direction role of the elements. At the same time, as a special industry, the service industry highly related to the other industries, so the industry relationship can affect the factor income role of services trade. Then the article studies the services trade impact on factor income with the industry relationship as an important prerequisite. A welfare effect of the whole society is the important premise of the whole policy proposals. The article contrast the conditions between "without services trade balance"and "balance on services trade", and further discuss the elements of China's underlying causes of services trade impact on factor income, the reason of income gap between domestic factor income and foreign elements, the distributional welfare and transfer effects.Empirical analysis using data, productivity mechanism analysis, industrial linkage effect analysis and welfare distributional effects showed that China's services trade development will reduce the income of labor-factor owners, while raising the income of capital owner, and the capital elements income increasing part are came from the reduction of labor factor owners. In addition, the consideration of different industries showed that China's service trade development of factor income effects have certain sector specific features, especially for labor-intensive industries and knowledge and technology-intensive industries. Finally, combined with the preceding analysis conclusions, the study analyze the root causes of the impact of China'sservices trade on factor income and put forward specific policy proposals.