Intra - Industry Trade Of Sino - US Service Industry And Its Influencing Factors

Since the1990s20th century, there has been a closer economic and trade relationship between China and America as the trade developed rapidly. With the fast development of bilateral goods trade, the service trade is also increasing quickly. Besides, the international trade in service has been transforming from inter-industry trade to intra-industry, and intra-industry has become the main part of service trade. Analysis on the level and influencing factors of Sino-US service intra-industry trade has both theoretical and practical significance. It will provide basis to increase the Sino-US service intra-industry trade level, and to raise the international competitiveness of Chinese service industry.This dissertation summarizes the studies on service intra-industry trade firstly, and the related theories about intra-industry trade. Then it analyses the service development of China and America. And it also analyses the amount and structure of bilateral service trade between the two countries. Bases on this, the paper calculates the statistic G-L index, dynamic MIIT index, horizontal HIIT index and vertical VIIT index, using the2001-2012data of BEA database. And the results reflect the level and type of Sino-US service intra-industry trade. Furthermore, an empirical analysis is made to study the influencing factors. At last, the thesis provides political suggestions to enhance international competitiveness of Chinese service and to increase the Sino-US service intra-industry trade level. The suggestions are as follows, to provide more policy support on service trade; to optimize the internal structure and promote the balanced development of the service sectors; to enlarge the opening degree; to increase the scale of foreign investment and guide the flows reasonably; to take active measures to avoid the impact of financial crisis.Base on the above research, this paper draws the following conclusions. Firstly, although there is a large gap between China and the US on service development level, the bilateral intra-industry trade grows rapidly. Secondly, the level of Sino-US service intra-industry trade is high on the whole, but differences exist among different departments. The level in Travel, Passenger fares, Other transportation and Telecommunications is high, while it is low in Royalties and license fee, Education, Financial services and Insurance services. In addition, the level of service intra-industry trade between China and the USA is significantly correlated with the competitiveness of the relevant service department in China. Thirdly, the traditional vertical intra-industry trade is the main part of Sino-US service intra-industry trade. Lastly, as for the influencing factors, the empirical results show that the difference of national income per capita between China and US, opening degree and America’s foreign direct investment in China have positive correlations with China-US service intra-industry trade, while currency exchange rate has negative correlation. And the American financial crisis in2008has a negative effect on Sino-US service intra-industry level. It is also discovered that the difference of industrial structure between two countries and intensity of trade in goods do not affect service intra-industry trade significantly.