The Empirical Analysis Of Influence Factors In Service Trade Competitiveness Of "BRICS"

In2001, O’Neill, chief economist at Goldman Sachs, proposed the "BRICS" concept in "The world needs better economy’BRICS’". The word "BRICS" refers to the first letter of Brazil, Russia, India and China, which is similar to the word "brick", so it is called "BRICS countries". In the following ten years,"BRICS countries" appears more and more frequently in the international economic discussions as an emerging market economy, and the rapid economic development of its member states has drawn more and more attention of the whole world. Especially after the2008financial crisis, the strong growth momentum of "BRICS countries" has made important contributions to the world economic recovery while many developed western countries had economic downturn. In December2010, China, as a rotating presidency, jointly decided to absorb South Africa as a full member with Brazil, Russia and India. Then, Brazil, Russia, India, China and South Africa constitute a new "BRICS". At the same time when the "BRICS countries" develop in high speed, the pattern of international trade in the world is quietly changing. With the rapid development of the global services industry, the world economy has been in transition to a service-based economy, which makes the service trade, originally as an aid of traditional goods trade, to become the commanding heights of world economic development. Because of the more and more important role it plays in the strong, balanced and sustainable growth of global economy, service trade has become the focus of national economic and trade competition under the new situation.Therefore, a comprehensive analysis of the "BRICS" development In service trade, in-depth study of the international competitiveness level of "BRICS" service trade, and empirical research and comparative analysis of the impact factors of "BRICS" service trade competivity will has a strong enlightenment for "BRICS" to develop and increase their international competitiveness of service trade. The purpose of this paper is to provide valuable reference for improving service trade competitiveness of "BRICS" against their different national conditions through the empirical research and impact factor quantitative analysis of "BRICS" service trade international competitiveness.This study mainly consists of four parts:The first part is introduction. This chapter is the groundwork and generalization of the whole paper, which states the topic choosing background, practical significance, theoretical basis and available research results from domestic and foreign researchers. The overall framework, and innovations and shortages of the paper also briefly introduced in this part.The second part is to analysis service trade competitiveness indexs of "BRICS countries". In this part, the international market share, revealed comparative advantage index and the trade competitiveness index are aplied to analysis and compare the service competitiveness of the five coutries. Besides, the revealed comparative advantage index analysis is also subdivided by industries to compare the dominant industries in different countries.The third part is analyzing service trade competitiveness impact factors of "BRICS". In this part, based on the Potter national competitiveness "diamond model", the writer selects some possible factors that can affect the service trade competitiveness of "BRICS countries" and use econometric analysis tool to build linear econometric models for the five countries respectively, which analyzes the impact of different factors in different countries and identify the factor which has the most significant impact on a country’s service trade competitiveness. Some effectively suggestions are given to enhance the service trade competitiveness of these countrier refer to the analysis results.The forth part is extension and inspiration. The previous index and measurement empirical analysis are highly summarized in this part. The writer also further analyzes the importance of every revealed impact factor on different countries, and gives some proposals on the ways to enhance service trade competitiveness of China. Innovation of this paper is that in the empirical analysis part,"BRICS countries" are not classified as one catalogue, but are modeled respectively by comprehensive consideration of inherent differences between emerging economies. Therefore, the suggestions proposed are different according to the distinguishing analysis result of the five countries. Since the research level and available data is limited, there are still some drawbacks in this paper. Because the model of South Africa econometric is unsuccessful, significant factors affecting the service trade competitiveness cannot be found, so I hope the following researchers are able to make up this shortcoming of the study.