Comparative Studies On Influences Of The Brics’ Services Trade To Economic Growth

This article study the effects of service trade to economic growth from the perspective of the comparative analysis of the BRICS countries, Under the background of service economy in the world, the BRICS service trade has developed rapidly, and plays a more and more important role in the international service trade. The development of Chinese domestic service industry and expansion of international trade in services, make it of great significance for the BRICS economy to transform its structure, development mode and economic sustainable development.Both Service exports trade and imports trade are able to promote economic growth. Like general merchandise exports, service export promote economic growth mainly through these approaches:the use of idle resources, playing comparative advantages, expanding the accumulation of capital, and promoting technological progress. Final consumption services imports of a country may have compression effect on aggregate demand to some extent, but the producer services can import promote economic growth by changing the division of a country’s resources endowments, improving their level of division of labor and achieving economies of scale. In this paper, on comparative analysis we find that the BRICS service trade developed at a really high speed, but in terms of development scale, industrial structure and competitiveness they shows great difference from each other. On this basis, at first, the author use of the BRICS’ panel data from1995to2012for empirical analysis and find that the BRICS countries’ services trade plays a significant role in promoting economic growth. Then, we use BRICS’ time series data respectively through regression analysis, and the results shows that the effects of service trade to the country’s economic growth differs from country to country. The influence of India’s service trade to economic growth is the largest, South Africa is the second, Russian and Chinese service trade have effects on promoting economic growth to some extent, the weakest is Brazil.The structure of this paper is arranged as following:the first chapter is introduction, which expounds the writing background and researching significance of this article, and introduces the research methods and main content. The second chapter contains literature review in the domestic and foreign, we discuss the papers of the domestic and foreign scholars that how the service trade affects economic growth from two aspects, respectively. The third chapter expounds the basic theory of service trade promoting economic growth. Firstly we summarize the theory foundation of service trade promoting economic growth, and then we northerly analyze the path of the service trade influencing economic growth. The fourth chapter mainly introduces the developing situation of the trade services in BRICS, which is discussed from the service trade development scale, the industry structure and competitiveness, respectively. The fifth chapter is the empirical part. We have selected economic data from1995to2012, and established the econometrics model. In this part, we firstly researched BRICS service trade’s impact on economic growth from the overall inspection, and then we separately studied each country of the BRICS to compare differences of the impact of trade in services on economic growth among these countries. The sixth chapter is main conclusions and policy recommendations. On the basis of the previous five chapters, we have reviewed the paper in full, summarized the conclusions, and put forward suggestions that promoting the development of Chinese service trade in this part.Based on the theory and empirical analysis, this paper puts forward some suggestions of developing Chinese service trade:the first is the development of modern service industry, and speeding up the service industry structure upgrade; And, China should develop the comparative advantages and further strengthen the development of traditional service trade; In addition, Chine should raise the level of foreign capital utilization; Lastly, investment in education should be increased and the cultivation of the talent should be concerned seriously.