Mechanism Analysis Of Service Trade On China's Economic Growth

With the vertical development of global economy,the driving factors of development has transferred from manufacturing economy into service economy.In today's world,service of economy has been a significant feature,which is inevitable and consequent due to the increasing social productivity.Especially,service trade is playing a more and more important role in promoting economy growth and therefore,a huge amount of attention has been paid by researchers in the world.Just proven by historical economy development,with the upgrading of industries,various production factors including capital,technology and labor etc.should flow into first agriculture,then manufacturing,the lastly service trade.In the general,if the ratio of service trade in the gross national product is over 50%,it can be concluded the country has developed into the stage of service economy.Till now,some developed countries such as America and EU countries has realized the transformation of service trade.And the proportion of the third industry output has been over 60%.In recent years,our country's goods trade has developed fast,however the structural problem of economy development such as natural resource and environment problems has been increasingly prominent.To drive economic development,it's urgent to transform the way of trade from goods trade to service trade.This paper starts with the definition of service trade,through different economy theories,then analyzes and summarizes the relationship between service trade and economic development.This paper will then focus on the five paths between service trade and economic development,including physical capital,human resource,technological advancement,opening degree and marketization.Based on the current theories,empirical analyze would be applied by using 1983-2013 national data to figure out how service trade affect economic development.Through the whole above,in the last,this paper will address the paths between service trade and economic growth and point out the problems,then some available suggestions would be followed.