The Impact Of Trade Facilitation On Service Trade Exports

With the deepening of trade liberalization, the global trades rapidly glow. Service trade accounted for an increasing proportion of a country’s GDP. After several rounds of trade negotiations, the impact of traditional tariff and non-tariff barriers decreased, while trade facilitation measures, such as port environment, customs efficiency, and institutional environment, has become increasingly prominent in reducing the cost of trade. Thus, to improve the trade facilitation is one of the important policy to promote a country’s trade in services. With the degree of trade facilitation rising, global trade in services will be to an important force to promote for world economic growth. Therefore, to study national trade facilitation and strengthen the mutual economic cooperation between countries has important practical significance in promoting the growth of world services trade.This paper focuses on the hot topic of trade facilitation, firstly carry out a theoretical analysis of trade facilitation and services export, then constructed Trade Facilitation index evaluation system and use entropy method to measure the trade facilitation index score for 109 countries (regions) during 2007-2013. The evaluation results showed that those higher economically developed countries, particularly those higher developed in trade are on a higher level of trade facilita tion. Europe and the United States and other developed countries are almost all ranking on the most or more facilitated positions. Less economically developed countries in South America, Africa, and Asia, rank on the general or not facilitate list. Then, taking the overall score of trade facilitation as an indicator, through advised gravitational model, the paper made an empirical research of the relationship between trade facilitation and service trade export. The results showed that the impact of trade facilitation on services exports is significant, and in the low score countries, the impact is greater. Therefore, it is an important way to promote the country’s service trade by improving the level of trade facilitation. Finally, according to the empirical results, the paper put forward several relevant proposals from the perspective of improving the level of trade facilitation.