Research On The Relationship Between China’s Trade In Producer Services And Economic Growth

Nowadays trade in producer service has become an inevitable development trend of international trade. The trade in producer service is not only beneficial to the rapid development of producer services, but also beneficial to the overall optimization and upgrading of the structure of service trade. As a powerful manufacturing country, China’s trade in producer services can provide a strong guarantee for the development of domestic manufacturing and other services sector, and also provide new enlightenment for future economic growth in China. At present, there are many issues such as China’s trade deficit in producer services has a growing trend, its trade structure is irrational and its competitive power is weak. However, the trade in producer service is in the stage of rapid development and its promoting effect on China’s economic growth is very significant. Therefore, it should be deeply discussed that the relationship between China’s trade in producer services and economic growth, in order to put forward reasonable suggestions for promoting economic growth by improving trade in producer services.It has been systematically and comprehensively studied that the relationship between China’s trade in producer services and economic growth: Firstly, the basic theory of the relationship between trade and economic growth has been introduced, and the specific mechanism of influence of trade in producer services on economic growth has been reviewed. Secondly, the current situation and characteristics of China’s trade in producer services and economic growth has been analyzed from two aspects: the overall situation and its structure. Moreover, the empirical analysis of the relationship between China’s trade in producer services and economic growth has concluded that the promoting effect of import of producer services on the economic growth is greater than the export’s. Then based on the VAR model, the impulse response function and variance decomposition method have been used to further analyze the relationships between each department of China’s trade in producer services and economic growth. It turned out to find that contribution degree of every department’s import and export to the economic growth is different. Finally, on the basis of current situation analysis and empirical research, the paper puts forward policy suggestions for improving China’s trade in producer services to promote the economic growth.