The Study On International Services Trade Promoting Zhejiang’s Services Development

Accompanying the development of global international services trade obtaining great progress,do the transfer of the resources and factors, and the flowing of international capital have importantinfluence on the development of economy and the services industry? How much is this kind ofeffect? Which channels and mechanism can promote the development of service industry? What isthe relationship between international services trade and the development of service industry?Based on the above problems, firstly, using the relevant theories of international services tradeand industry economics on the basis of researching lots of literature, this paper analyzes correlationbetween international service trade and service industry, and summarizes mechanism on theinternational service trade promoting the development of service industry, namely the internationalservice trade drives the development of service industry through promoting services capitalaccumulation and technical progress.Then, the paper analysis the coorelation between international services trade and servicesindustry on empiaical test. The empirical test is based on the statistics from1995to2009, Zhejiangprovince. The empirical test is divided into two parts, the first is to test that international servicestrade has promoted the development of services; then, basing on the empirical results of first part,introducing physical capital, human capital and technological progress in services, the second willtest international services trade promoting services throught the effects of capital accumulation andtechnological progress.Through theoretical and empirical analysis, this paper can draw the following conclusions:1. International services trade and services are closely related, and the relationship betweenthem is mutually reinforcing. International services trade promotes the development of servicesthrough three ways, namely through the promotion of services of capital accumulation andtechnological progress, which changes the comparative advantage in services and optimizesinternal resourses within services.2. on the effects part, cross-border trade in service promotes the development of services through physical capital accumulation and human capital accumulation, and foreign directinvestment promotes the development of services through the accumulation of physical capital,human capital accumulation and technological progress effects in services.Finally, based on the theoretical analysis and the results of empirical test, the paper give someadvices on the way of international services trade promoting services of Zhejiang province, whichwill be good for the futher development of international services trade and services.