An Analysis Of Factors Affecting China 's Service Trade

In recent years, with the rapid development of the world economy, trade in services in the global economic competition has become increasingly important. It has not only become a major factor affecting national economies, but also become an important measure of a country’s international competitiveness factors. Since joining the WTO, China’s service trade has gained rapid development. Our total amount of trade in services expand and the contribution to China’s economic growth continues to increase, but the development of trade in services still have some problems and there is still a gap with other countries. Therefore, we feel that the status of China’s service trade development research and its influencing factors have a very important significance, by analysis and research to find the ways to improve our international competitiveness trade in services, thus promoting China’s trade in services continue promotion and also promoting the prosperity and development of China’s economy.In this paper,we use the empirical analysis and theoretical analysis, and also incorporates some quantitative analysis to study the current situation of China’s trade in services development and the factors that affect the development of trade in services. In this paper, at first we clear the research background, purpose and significance, the methods, the lack and the innovation.Then It introduce the meaning of trade in services and the model literature review. Second, we introduce the status and the influencing mechanism of China’s service trade,then by using the gravity model factors affecting China bilateral trade in services proposed its determinants, the results show that: the per capital GDP of the importing country, per capital GDP of the exporting country, the physical distance and the exporting country for the loan amount have shown significance. The per capital GDP of the importing country, the exporting country’s per capital GDP and the loan amount are manifested positive impact of trade in services, and the physical distance showed a negative correlation with the impact of trade in services. Finally, based on the results we propose seven ways to develop theeconomy: at first we should optimize the industrial structure of trade in services,balance the regional development, and improve internal and external trade in services excessive centralization.Then increase trade in services business funding sources,improve the coordination and management system of China’s trade in services and increase the service trade professionals foster efforts. Finally the government should play an active role in the development of trade in services and strengthen innovation in emerging industries so as to expand demand for services.