A Research About The Impact Of Service Trade On Service Sector Employment In China

In today’s world, trade in service has been becoming booming, service sector hasbecome a pillar industry to absorb labor employment instead of industry andagriculture sectors. In many developed countries, the service sector employment intotal employment accounted for nearly80%, but in China, this proportion was only34.6%, there is a huge gap with the developed countries. China’s service sectoremployment has experienced rapid growth before, but the employment absorptivecapacity has declined in recent years. If the services can’t form new needs, thecapacity of services sector to further expand employment will be limited. The articlehas discounted the employment effects of China’s service trade from the view oftheoretical and empirical respectively.Based on the traditional theory of international trade and Production Functions,the article has analysis the employment effects of China’s service trade fromtheoretical aspect. On this basis, the article has a simple conduction mechanismanalysis of the employment effects of trade in services. The results showed that: tradein services exports is conducive to the expansion of service sector employment; theemployment effects of services imports need further demonstrated through empiricalanalysis; services trade has not only direct effects but also indirect effects on servicesector employment.The description of the status quo of China’s service trade and service sectoremployment showed: Trade in services and China’s service sector employment bothare basically in a steady growth trend, the growth rate of the service sectoremployment is much lower than that of trade in services; There is a certain similarityin industry distribution of services trade and service sector employment, both of themfocused in the traditional labor-intensive service industries, and modern serviceindustries increased gradually; The major proportion of service trade and servicesector employment are concentrated in the eastern region, and trade in services hadgreater regional differences.Next, the article used the inter-provincial panel data to estimate employmenteffects of China’s trade in services by FGLS (Feasible generalized least squares)method, the conclusions as follows: services exports had been a role of promotingChina’s service sector employment, and there’s some regional differences, the western region’s effects were the most obvious, followed by the eastern region, the centralregion presented counterproductive; The employment effects of trade import inservices were negative, and the more developed in service trade regions, the negativeeffect was smaller. Subsequently, took the United States and Japan for example tocompare the international experiences.According to the conclusions of the former analysis, the article put forward thefollowing suggestions: To strengthen the foundation for the development of theservice sector employment; Give full play to the service trade to drive service sectoremployment.