| This study aims to measure international competitiveness of Korea’s trade in Services,and analyzes the factors affecting international competitiveness for improve service trade deficit and enhance international competitiveness of trade in services.First,this study suggests the development status of Korea’s trade in services.Second,this study measures international competitiveness of Korea’s trade in services,using international market share(IMS),trade competitive(TC)and revealed comparative advantage(RCA)index as the measurement of international competitiveness.The results indicate that Korea has comparative disadvantages trade in services as a whole,and has comparative advantages in construction and transport services by sectors.Third,according to the Michael Porter’s diamond model,this study analyzes the factors affecting international competitiveness.In addition,this study defined econometric model employing ordinary least squares(OLS)regression.This study uses export of service as a dependent variable,and human capital,urban population,GDP per capita,export of merchandise,index of service industry production and trade openness as explanatory variables in the regression analysis.The results of regression analysis suggest that human capital,GDP per capita,export of merchandise and trade openness have positive effects on the competitiveness of Korea’s trade in service.On the other hand,urban population and index of service industry production have negative effects on the competitiveness of Korea’s trade in service.Based on theoretical and empirical results,this study suggests development countermeasure for enhancing international competitiveness of Korea’s trade in services. |
