The Affecting Factors On The Development Of Knowledge-based Service Trade In China

Since the Reforming and Opening Policy of China, our economy developed rapidly, especially in the aspect of trade. Taking advantage of the natural endowment and labour endowment, China has become one of the biggest trading countries around the world. In recent years, with the encouragement of improving our economy mode to a more advanced one, the trading structure of our country is being paid more and more attention. Nowadays, trade of service is playing a more and more important role not only in developed countries, but also in developing countries. It is considered to be a new growth point in the next decades.At the begining of1990s, international trade of service started to grow. The total amount has already exceeded more than1/5of the traditional trade’s amount now. Many developed countries gradually relied on trade of service instead of trade of goods. This strategy greatly promoted the adjustment of the domestic economy structure. For example, trade of service could make the mobilization of knowledge and skills more efficiently, so that the importing country would benefit from this. In addition to it, the improvement of modern technologies would have positive effects both on traditional industries and on emerging industries including retailing, communications, IT industry and financing industry. One of the important features of international service trade is that the proportion of knowledge-based service industry like finance, information and communications is becoming bigger and bigger while the advantages of transportation and travelling is less obvious.Based on the previous researches, author broke the limitations and took the adventure to make an innovation which analyzing the competitive advantages of Chinese knowledge-based service trade by quantitative method.The theory analysis in this paper is mainly based on Potter’s Diamond Model. According to the four basic factors and two supporting factors of the model, several indexes are chosen to analyze their influence on the development of knowledge-based service trade.In order to quantify the influence of each index, Grey Correlation Degree is selected with the data from1997to2012. After several steps of calculation, we got the results of the influence on the knowledge-based service trade. The conclusion is:(1) The advanced factor condition of Diamond Model has the biggest influence on Chinese knowledge-based service trade;(2) As a supporting factor, government plays a vital role in the development of Chinese knowledge-based service trade.Based on the results of the research, there are some suggestions being raised at the end of the thesis.