Study On International Competitiveness Of Service Trade In Emerging Market

With the escalation of international trade, service trade plays a decisive role in the economic development and trade growth of a country. Nowadays, service trade has already become one of the fastest growing sectors in the world economy. International competitiveness of service trade is an important symbol of a country’s economic strength.As the developing countries which attract all the world attention, the "BRIC"(Brazil, Russia, India, and China) is representative of emerging market. Through empirical research on international competitiveness of the "BRIC" service trade, we can understand the reasons of differences of service trade competitiveness in emerging market countries. The study is useful to enhance the international competitiveness of service trade in the vast number of developing countries.Firstly, the paper reviewed the classical theory of service trade, and explored the service trade competitive power sources and determinants. Explaining the competitiveness of service trade, comparative advantage theory, and competitive advantage theory, the paper use these classic theories to analyze the "BRIC" service trade competitiveness.Then, combined with the import and export service data in the year of1999-2010, the paper used the total Service trade, Dependence degree of service trade, contribution rate to foreign trade of service trade, contribution rate to economic growth of service trade to elaborate the whole status of "BRIC" service trade development.Once again, combined with the import and export service data in the year of1999-2010. the paper used Market Share (MSI index), Service Trade Competitive index (TC index), Revealed Comparative Advantage index (RCA index), Export Similarity index (ES index), and Intra-Industry Trade index (GL index) to empirical study on the "BRIC" service trade competitiveness.Later, in the base of above empirical analysis and the "nine elements" model theory, the paper cited five factors affecting services trade that are the international direct investment, the level city development, human capital, commodity exports, the level of the service sector development. Using the data from1987to2010and establishment of OLS model, the paper discussed the degree of influence of the five factors which affect service trade competitiveness in"BRIC’Finally, based on the regression analysis of variable factors, the paper proposed measures of enhancing the international competitiveness of service trade in China.