Shanghai And Hong Kong Trade In Services Competitive Advantage Is A Comparative Study

In the context of economic globalization, service trade, is taking an increasing important position and raising becoming a key indicator to measure the international competitiveness of a country. Shanghai's "Eleventh Five-Year Plan" puts the development of Shanghai's service industry and service trade in an important strategic location, and plans to change the pattern of urban development, to enhance industrial competitiveness, and speeds up the formation of a service-oriented industrial economy, to build international, financial, trade and shipping center. As the world's shipping, financial center, Hong Kong has built up a highly developed service industry. There are similarities in the geographical environment, population and culture between the two cities. Hong Kong's development pattern of trade and experience in services can offer some reference to Shanghai. Based on the above understanding, this article mainly studies the following:1, Based on the competitive advantages of services trade perspective, it uses the indicators such as trade competitiveness index (TC), market openness (SO), trade in services contribution to GDP and pulling power to compare the overall competitiveness and sector competitiveness of Hong Kong and Shanghai. First, this paper gets the conclusion that Shanghai's service market openness, trades in services contribution to GDP and pulling power are not high. In recent years, even there is a downward trend; Then, to make static analysis and trend analysis .The results show that in Shanghai in tourism, construction, other business services, computer and information industries have a competitive advantage, Hong Kong trade in services, transportation, financial industries have a competitive advantage.2, Based on Porter's "diamond model" of trade in services, it made a comparative analysis of the affecting six elements of the system in Shanghai and Hong Kong. Results show that the basis of the service sector in Shanghai is relatively weak. Human resources, technology, traditional consumption pattern, enterprise competitiveness and the competitive environment, the relevant policies of the government of the early differences with Hong Kong led to the gap between services trade in the two cities. This article also pointed out that worldwide transfer service industry, the upcoming "World Expo", CEPA co-operation agreement between the two places bring the development opportunities for the future.3, By quantitative analysis, it used the "diamond model" to quantify the relevant factors'impact on the competitiveness of the Shanghai-Hong Kong trade in services, and explain why. Results showed that the number of employees in the service industry in Shanghai, attracting foreign investment scale, the scale of trade in goods and services, the level of service trade exports have positive correlation with the service export, while the number of employees in Hong Kong had no obvious relevance with the level of trade in services, which verified that the people in Hong Kong had a important role to the overall level of trade in services.