The Research On The Effect Of Idiosyncratic Human Capital On The Competitiveness Of China Service Trade

With upgrading of the industrial structure and economic globalization, servicesindustry has been becoming the driving force of global economy. Human capital，Especially Idiosyncratic Human capital is considered to be the key factor affectingservices trade by many scholars. Service trade competition is gradually from thecost-advantage into Human Capital advantage and Idiosyncratic Human Capitaladvantage. After China’s accession WTO, China service trade competitiveness in aweak postposition needs to be improved.Begin with the research background and significance basing on the existingresults of Idiosyncratic Human Capital and the competitiveness of service trade.Define the concept and the characteristics of Human Capital and IdiosyncraticHuman Capital of service trade. Analyze theory foundation of trade in servicescompetitiveness and idiosyncratic human capital. Expound the applicability of the"theory of national competitive advantage in service trade competitiveness.Analysis the relationship between Idiosyncratic Human Capital and Service Trade.Analyze the development of service trade from the perspective of Human Capital.Use the international index to respect the condition of the competitiveness ofChina’s service trade status and idiosyncratic human capital in different industriesand regions. Study six facts which reflect the international competitiveness andinternational level of our country by building a new "diamond" model basing uponexisting achievements. The results of State Space Model and GMM surface PanelOLS analysis from1985to2010years of time series data and2002to2010years ofthe panel data show that Idiosyncratic Human Capital, FDI and the GDP per personare factors. Idiosyncratic Human Capital is the key point in the competitiveness ofservices trade. The higher the level of the human capital, the smaller the effect ithas on the service trade of our country. This reflects the fact that the level of thecountry’s human capital stays in a low condition. the Idiosyncratic Human Capitalaccumulation in Western China is weaker than the central and Eastern of China andbecome the biggest bottleneck of the development of service trade. Creating afavorable external environment for the competitive advantage of modern trade inservices with idiosyncratic human capital is a top priority.