Difference And Mutual Influence Analysis On Trade In Services And Goods

The rapid development of service industry and the enhancement in trade of services along with the technical progress have greatly stimulated the development of international trade in services. Now, the growth of modern international trade in services has not only far exceeded the growth rate of trade in goods, but also showed the tendency towards knowledge and technology-intensive services. Since Reform and Opening, trade in services of our country has gained fast development and risen its international status. However, without high quality, its predominant proportion is traditional trade in services; moreover, its development lags behind the trade in goods of our country. The structural of trade in services and goods of our country is out of balance. Therefore, at present, finding out the difference and mutual influence between trade in services and goods will help promote their coordinated development, and improve the international competitiveness of trade in services of our country.First of all, this paper reviews the literature on the applicability of traditional theory of trade in goods on trade in services, and the study of complementary and alternative relationship between trade in services and goods. Then, learning from the endogenous growth theory on analysis of economic growth and international trade in the condition of open economy, this paper establishes theoretical model, and studies the affecting factors and mutual influence between trade in services and goods.Based on the theoretical model, this paper analyses the difference of affecting factors between export of trade in services and goods by using time series data. It concludes that, at the present stage, the impact of R&D investments on export of trade in services and goods is not significant, however, the growth of three industries and the import of trade in services and goods contribute greatly to their growth, and the impact of human resource and FDI on them is complex. Then, this paper discusses the mutual influence between trade in services and goods from two points of view, one total, one industry component. The study concludes that the interaction relationship exists in not only the imports of services and the exports of trade in goods, but also the imports of goods and the exports of trade in services, moreover, the interaction relationship between import of services and export of goods is more prominent.Finally, this paper puts forward some policy proposals for improving the international competitiveness of trade in services of our country and promoting coordinated development between trade in services and goods. These proposals include: starting by brand-building and industrial construction change to promote the development of service sectors; continually increasing R&D investments of our country and improving the technology structure of overall product of foreign department; establishing and improving the system of education and training to promote the level of human capital of trade in services; improving the opening degree of trade in services, introducing high-quality foreign investment actively and carrying on international outsourcing business; accelerating the construction of producer services, increasing import of advanced producer services and promoting the international competitiveness of trade in goods; gradually improving import of goods to promote exports of service.