Research On The International Competitiveness And The Influencing Factors Of The Service Trade In China

Recent years, the international trade in services, as an important part of international trade, has achieved a huge development and its international competitiveness has become a key indicator to influence the international competitiveness of a country or a region. Since the reform and open up, China’s development in service trade has made a more significant achievement:the services trade has been expanding; the internal industrial structure of services trade is gradually toward the direction of diversification. However, compared with the international trade in goods, the development of China’s trade in services is still backward and its deficit has expanded in recent years, we can say that China’s trade in services does not have a strong competitive advantage and international competitiveness level in the international community. In such a situation, it is very necessary and urgent to analysis the development and international competitiveness of our country’s service trade and try to find some policy measures to promote and enhance the development of China’s trade in services.This paper first describes the theoretical basis of the competitiveness of trade in services, highlights the core content of the traditional theory of comparative advantage and competitive advantage theory and the applicability of these two theories in the international trade in services. The theory of comparative advantage can explain international trade in services, only to be slightly modified; theory of competitive advantage as the more popular trade theory can be also used to explain international trade in services. Secondly, this paper gives an overview of the development of China’s service trade, and then sum up its several significant characteristics:First, the size of China’s service trade continued to expand; Secondly, the deficit of China’s service trade year becomes more and more wide; Thirdly, the internal industrial structure of China’s service trade is toward the direction of diversification. After this, this paper selects four competitiveness index(the international market share, trade competitive advantage index (TC index), the revealed comparative advantage index (RCA Index) and the of the revealed competitive advantage (CA Index) Indices), and based the import and export data of China’s service trade to give us a longitudinal analysis of China’s service trade. The conclusion is that China’s service trade as a whole does not have a certain degree of international competitiveness, the competitiveness of China’s service trade mainly concentrated in the traditional tourism resources or labor-intensive service sector, the emerging knowledge and technology-intensive service trade sectors are lagging behind. In addition, this article uses comparative analysis to analysis the service trade development of the United States, India and China. This paper through the establishment of the multiple linear econometric models for empirical analysis finds that Gross domestic product (GDP), services openness and exports of goods have a significant positive impact on international service trade, while, foreign direct investment and domestic service industry development dose not show a significant impact. Finally, this paper proposed the following policy proposals:pay more attention to speed up the development of the domestic service industry; improve service openness and increase the intensity of services utilization of foreign capital; give full play to the linkage effects of trade in services and trade in goods; improve the supply of advanced production elements; give full play to the role of the government.The innovation of this paper is mainly reflected in its research methods, includes the method of qualitative and quantitative combination and static and dynamic combination, comparative analysis and empirical research method. In this paper, the author use four measurement index (international market share, the RCA index, the TC index and the CA index) to analysis China’s service trade both on the overall and sub-sectors and compare the United States and India with our country. After this, the paper selects a few key variables, establishes multiple linear econometric models to explore the influence factors of China’s trade in services.The defects of this article are mainly reflected in two aspects. The foreign literature review in this paper is not as abundant as domestic literature review because of the restrictions of my time and ability. In addition, generally speaking, the human capital of a country can affect the international competitiveness of trade in services, while, because of the difficulties of data collection, combined with yet to find a good indicator to reflect the variable, the introduction of human capital variables in the empirical analysis in this article does not realized.