The Empirical Study Of The Explanation Strength Of Different Trade Theories For Financial Service Trade In Our Country

According to China balance of payment statements which is announced by the State Administration of Foreign Exchange in 2006,with favorable balance of trade in current account and capital account,there also is a huge trade deficit in finance service and insurance service,so the openness of trade in financial service will bring us with much more pressure of speeding up the development.Based onthe industry and trade characteristic of trade in financial service,this paper attempts to exam the explanation strength of different trade theories from empirical analysis angle and put the traditional trade theory of which the representative is comparative theory,new trade theory characterized as scale economy and imperfect competition,the competitive theory into practice to the theory explanation of trade in financial service and then solves the question of strategy and policy choice of trade in financial service with the FSA restraint.This article begins with related decision theory of trade in financial service and employs the theoretical analysis method unified with empirical study method.Through the examination of the serviceability of the comparative advantage theory,the competitive advantage theory as well as intra-industry trade theory to trade in financial service in our country,we find that the trade in financial service which occurs by the way of cross border supply conforms to the comparative advantage theory and has certain deviation with the competitive advantage theory. The lack of human capital factor has leads to the huge trade deficit of this kind of trade in financial service,speaking of the banking service,the competitive advantage theory has more explanation strength than comparative advantage theory,the introduction of market competition mechanism makes the banking industry have certain competitive advantage.The trade in financial service which occurs by the way of commercial existence follows the similar demand preference theory and the economies of scale theory.For different provision modes and different types of business,there are different theoretical bases.So there must be some discrimination in the choice of development strategy.Speaking of the cross border supply,we should make efforts to elimination the restriction of human capital factor,and for the commercial existence way,the government on the one hand should guide the Chinese-funded financial agencies to choose proper host country and target market,implement the strategy of "walk out",on another hand, the government should also strengthen the supervision and control the risk which comes from the internationalization of the finance industry.