Empirical Study On Influence Of Service Trade To The Growth Of China's Economy

Since 1980s, as the world's third technological revolution broke out, international trade in services has achieved a rapid development. At the same time, China's economy has also entered a golden age of rapid development because of the introduction of reform and opening-up policy. The development of goods and service trade have become two major driving force of economic growth, particularly the service trade with more rapid development momentum. This area attracts wide attention from scholars. However, because the development of China's service starts relatively late, the research on service trade is still in the initial stage, which is on the base of research methods of scholars from abroad and experience. The author reviewed and summarized the literature, and found the current vacancy and insufficiency in this field, and then analyzed the writing purpose and significance of research in this area. The author thought that it was necessary to empirically analyze the impact of service trade on China's economic growth and research the short-term and long-term relationship between service trade and China's economic growth. Based on the relevant theoretical research, through the decomposition of Cobb-Douglas production function, we got some influence factors, adult power of capital, physical capital and technological advancement, etc. Then, the text verified how the different service-intensive sector affected these factors of the production function; at the same time, we tested the Granger causality between independent variables and dependent variables to determine whether variables related to long-term dynamic relationship. So we can analyze the influence mechanisms of service trade on China's economic growth.Article is divided into five parts:the first part of the article introduced the background, writing purpose and significance, research methods, thesis structure and major innovation. Secondly, through review the theory of economic growth and synthesis of existing research literature respectively, from theoretical and empirical perspective, we systematically classed the research on the relationship between service trade and economic growth and reviewed existing research results and insufficiency. We wanted a development and some innovation based on this analysis. The third part summarized main growth theory and analyzed the impact of service trade on economic growth in china. The fourth part is the empirical part and the core of this paper. We decomposed the Cobb-Douglas production function into physical capital, human capital, technological progress, the degree of opening up, and analyzed the impact of different factors on economic growth in China through time series; and then we analyzed the role and impact of different factor intensity level of service trade on the isolated various factors from the production function, to test the impact means and degree of service trade on economic growth. In the fifth part, by the previous empirical test, we made a summary about the empirical analysis results. According to test results and the actual situation in our country, the test put forward constructive policy recommendations in order to promote sustainable economic development in China.