Research On The Competitiveness Of China's Productive Service Trade And Its Influence Factors

Because of the increasing proportion of producer services trade in service trade, more and more economic scholars and policy makers focus on it. As the basis of the production of service trade, the industry of producer services is the research focus of the industrial structure adjustment and optimization, which plays an important role in the long-term and stable development of China's economy. However, the current situation of producer services trade is not optimistic. The deficit has existed for a long time and has an increasing trend, which leads to the greater demands to increase the export volume of producer services trade. So this paper analyzes the current status of the production of service trade, and explores the factors that affect the competitiveness of China. Then it put forward the solutions to improve the competitiveness of China's productive service trade.First this paper analyzes the current status of the production of service trade in China at present and the competitiveness of the 1997-2014 on the whole and structure. In order to compare the competitiveness of China's productive service trade international status with others, some countries are selected for comparative analysis. Empirical analysis uses two kinds of statistical methods of factor analysis and regression analysis, five kinds of factors, namely supply factors, demand factors,technological innovation, industrial basis and government role,are selected in the extraction of 11 indicators to explore the impact of these indicators on the competitiveness of producer services trade.Two factors were extracted from the factor analysis. Among them, “the direct effect” factor includes the supply factor and the industry foundation, the “spillover effect” factor includes the demand factor,the technical innovation and the government function. Through the regression analysis, it is found that the comprehensive factor score has positive effect on the productivity of producer services trade competitiveness. However, the FDI has a negative effect on the export of producer services due to its own particularity. The study found that the cause of this result is that the majority of FDI flows to manufacturing, and the share of producer services is small. On the other hand, it is that there is acrowding out effect on the FDI itself, which is likely to be squeezed out of the country's productive service industry.On the basis of detailed analysis of the influencing factors, we put forward some suggestions on how to improve the competitiveness of producer services in China. Mainly from three levels of the macro level, the industry level and the micro level, the government, industry associations and enterprises have to work together to improve the status of China's productive service trade.