A Comparative Analysis On The International Competitiveness Of Financial Services Trade Between China And India

When the economic structure of the world is in a state of adjusting and optimizing, trade in services is more and more important to national economic development and its development level and competitiveness has become one of the important symbols to measure a country’s international economy competitiveness. Financial service trade is an important part of trade in services, playing a large role in supporting and promoting the development of both the other projects of trade in services and trade in goods so that it has important strategic significance to a country’s economic development and stability. Therefore, the development of financial service trade has drawn the government’s high attention. Along with the deepening reform of financial system and the advancement of financial openness, the scale of China’s financial service trade has expanded unceasingly, with its total amount of imports and exports increased from$3.6billion in2002to$27.7billion in2012.However, along with the growing total amount, the trade structure is not reasonable, which can be shown by that the proportion of insurance services was significantly greater than that of financial services. In addition, the trade deficit is widening, the overall competitiveness has been weak for a long time. There is a considerable gap compared with the developed countries, even compared with India, and China’s financial service trade still has a comparative disadvantage. India, another developing country, makes a figure gradually in financial service trade by the increasing growth and improvement of international competitiveness in recent years. China and India have many similarities and comparability, especially the experience of India’s progress on financial service trade is worth learning and using for reference in China. Therefore, comparative analyzing the present situation and the international competitiveness of financial service trade between China and India, and summarizing India’s successful experience of developing financial service trade so as to provide beneficial enlightenment to the development of China’s financial services trade are the major topics of this paper. As to the comparative analysis between China and India, domestic and foreign scholars had done lots of research. On the basis of predecessors’ research, this paper made innovations by comparative analysis from the angle of financial service trade, and study the issue of the international competitiveness of financial services trade between the two countries. Firstly, after elaborating the research background and significance, this paper summarized the related works and pointed out the research contents and methods as well as innovation points and deficiencies; Secondly, this paper defined some related concepts, such as the trade in services, the financial services trade and financial services trade competitiveness, and stated the relevant theories to make sufficient theoretical foreshadowing; Then, based on lots of statistical data, this paper respectively studied the present situation of financial service trade in China and India, and made comparative analysis; Next, using the statistical data from2002to2012, the paper did the quantitative statistics and comparative analysis about the international competitiveness of financial services trade of China and India,with three indexes:TIS,TC and RCA; On the basis of the above quantitative analysis, the paper gave comparative analysis of the factors that influence the financial service trade competitiveness of the two countries and summed up India’s advantage and the corresponding situation in China; Finally, the paper summarized India’s enlightenment to China and put forward highly pointed countermeasures and suggestions to promote the competitiveness of financial service trade of China.