The Impact Of Human Capital On Service Trade

The rapid development of service industry has brought enormous economic benefits to today's society,and has gradually become a new engine of economic growth in all countries of the world.At the same time,the service industry has led to the vigorous development of service trade,especially the knowledge and technology intensive modern emerging service trade,which is becoming a new idea and direction for countries to formulate foreign trade development strategy.Since the reform and opening up,China's economy has grown rapidly.With the adjustment of industrial structure and the upgrading of residents' consumption capacity,China's service industry and trade in services have developed rapidly,playing a decisive role in promoting the process of national economic growth.From January to November 2018,China's total import and export of services amounted to 4741.350 billion yuan,an increase of 11.5% over the same period last year,and the overall trade scale increased considerably.However,the overall level of China's trade in services is low,the international competitiveness is insufficient,and there are structural imbalances,which makes China's trade in services continue to run a deficit.Compared with the developed countries and newly industrialized countries,there is still a big gap.With the development of science and technology,especially the change and application of information and communication technology(ICT),modern service industry and trade in services have gradually upgraded from traditional labor-intensive with low economic value-added to new knowledge-intensive with high economic value-added.The birth and application of advanced knowledge and technology can not be separated from human capital.The knowledge,skills and physical strength of human capital are very important in the production process of service industry and service trade,and are one of the basic factors affecting a country's service trade.It is of great significance to clarify the specific relationship between human capital and trade in services for China to reverse the trade deficit in services,improve the structure of trade in services,enhance the international competitiveness of trade in services,and promote the development of trade in services,so as to promote the transformation and upgrading of China's foreign trade growth mode and promote the healthy development of China's overall economy.Firstly,this paper collates,summarizes and reviews the research literature on the concept of human capital,the common measurement methods of human capital,the definition of international trade in services,and the factors affecting trade in services.Secondly,according to the classical authoritative international trade theory,this paper elaborates the theoretical mechanism of human capital influencing national trade in services,and puts forward China's trade in services.The present situation of Yi and human capital is analyzed and compared internationally,and the existing problems in the development of human capital and trade in services in China at this stage are concluded.Furthermore,the paper uses empirical analysis method,takes the balance ratio of trade in services as the explanatory variable,constructs a transnational non-equilibrium panel model based on data of 51 countries from 1994 to 2017,and investigates human capital factors at different levels on trade in services.The results show that for all countries,the three proxy variables of human capital selected in this paper have a significant positive impact on the balance of trade in services,but have a more significant impact on the balance of trade in services of developed countries.Healthy human capital can significantly improve the service trade deficit of developing countries.Regression analysis of service industry classification also found that education-related human capital had a more significant effect on the trade balance of productive services,while healthy human capital had a positive effect on the trade balance of consumer services.Finally,this paper extracts the conclusions and rules applicable to China's characteristics based on the theoretical mechanism and empirical test results.From the perspectives of human capital and service industry,and from the perspectives of improving the level and quality of human capital,increasing investment in healthy human capital,perfecting financial market and subdividing the legal environment,this paper gives some suggestions on how to improve the competitiveness of China's service products.The policy suggestions on export level can provide a possible way for China to improve the current situation of service trade deficit,optimize the structure of service trade and promote the development of service trade.