Research On The Dynamical Competitive Advantage Of Chinese Trade In Service

Since the modern trade in service is not only the driving force of foreign trade restructuring and the way of foreign trade development, but also the new manner of enhancing the competitiveness of a country's foreign trade. It is playing a more and more important role in the national strategy of economic developing. it is becoming the vantage point of the world economy when the global economics going through an reform while it's also becoming the focus of competition of the countries all over the world. The western scholars are doing research on of trade in service with help of the theory of comparative advantage. This traditional theory of comparative advantage is measuring a particular sector of a country in international trade from a static perspective to decide whether the sector is competitive or not. But the research on how the comparative advantage of a developing country changing with times is still incomplete. The general stand point is that there is comparative advantage in the high-tech & human-capital intensive industries in developed countries and the comparative advantage in the low-tech & labor-intensive industries in developing countries. It is a strategic issue that how the developing countries take advantage of the favorable situation in the procedure of globalization to enhance the competitiveness of their trade in service. So it is necessary to find out a way for developing countries to enhance the comparative advantage of their trade in service in order to further develop the trade in service in those countries, this paper employ the dynamic development model to the analysis of comparative advantage in order to find out the links between technology advancing,technical outflow and comparative advantage of a country. The final goal is to get a constructive advice for enhancement of China's comparative advantage in trade in service.The paper is composed of five parts. Part 1, elaborate on theoretical and practical meaning of the comparative advantage, the review of standpoints and hypothesis. Part 2, Introducing dynamic comparative advantage model. First, without considering of the spillover effect, it's possible for the developing countries trapped in the condition of Permanent comparative disadvantage and inferable trade patterns, comparative advantage won by Initial technical conditions will win the comparative advantage in a dynamic way through learning by doing, resulting in the emergence of self-enhancement. There are comparative advantages in the low-tech service sector in Most of the developing countries which means the locking effects make them difficult to change current situation of comparative disadvantage. Then, we try finding out a effective way which based on technology outflow to eliminate the locking effects. Turning the hypothesis into reality depends both on technological spillover and the efficiency developing countries imitating advanced technology. Part 3, we discuss the development of China's trade in service and analyze the Problems from the qualitative and quantitative aspects. Further, we are doing binary regression analysis of FDI and human capital with the data of export of high-tech goods of trade in service. The result shows that there are positive effects on China's high-tech sector of trade in service with immediate links to the efficiency of imitation in technological spillover and the condition of our nation's human capital. Part 4.We gives some suggestions to China's trade in service...