A Study Of The Effect Of Trade In Producer Services On Chinese Economic Growth

Since 1980, with the in-depth development of the international division of labor, the rapid rise of the service economy has become a notable feature of economic development in the world today. Producer services are separated from the service sectors in manufacturing industry and become an emerging service industry. They are characterized by high-tech, high value-added, high human capital and high-growth. With a strong lead of other industries, it has become a leading force in promoting economic efficiency. They are playing an increasingly important role in promoting the development of economy.The structure of world trade in services has gradually inclined to the sector of trade in producer services and Chinese trade deficit in producer services will continue in the future. But this does not mean that we must limit the development of trade in producer services. By contraries, as to the limited room for development of trade in goods and further downward trend of net exports of goods in stimulating economic growth, therefore, we should make an in-depth study on the effect of trade in producer services on economic growth in China, so as to provide theoretical support to Chinese service trade policy formulation, to sum up the experiences of last 20 years of trade in services in China, and to explore the future development of the strategy and tactics in trade in services after China's accession to the WTO.Firstly, I make a summary of the related researches home and abroad, review the relevant literatures on economic growth and foreign trade briefly and focus on the impact of trade in customer services on economic growth. Secondly, I define the concept and the industry characteristics of producer services, analyze the positive and negative impact of trade in producer services on economic growth and the mechanism and conditions of trade in producer services in promoting economic growth. Thirdly, I collect the related data, analyze the current status of Chinese trade in producer services and make comparisons with other countries. I make an empirical testing of causal relationship between trade in producer services and economic growth with the data and measurement tools. I come to a conclusion that there is two-way causal relationship between imports of producer services and economic growth and there is only one-way causal relationship between exports of producer services and economic growth. Finally, I make suggestions to the problems of the development of Chinese trade in producer services.