Analysis Of The Affecting Factors Of China's Service Trade Upgrade

Under the background of economic globalization,the development of world economy is showing a trend of service-oriented,the proportion of the service industry in the GDP is rising while the world trade is gradually transferring to service trade.Therefore,the development level of service industry and service trade has become an important index to measure the level of economic development of a country.At present,China's service industry has become the largest industry of the national economy,but the level of development is still low.Although China's service trade is large in scale and has developed rapidly,its development quality is quite normal.Compared with the current situation of international service trade,there are many problems in China's service trade,such as the serious deficit in service trade and the low proportion of modern service trade export.This paper,taking the structure of China's service trade as the core,analyzes the factors affecting the upgrade of service trade and puts forward several policy proposals to promote the transformation and upgrade of China's service trade.Firstly,this paper has collected data to state the current situation of the deficit in service trade and the status of the service trade structure in China.By comparing China's service trade with the International service trade,this paper has concluded that China's service trade needs to be upgraded.After the status analysis,this paper has analyzed the transmission mechanism and impact of various factors on service trade upgrading.Secondly,this paper has collected and dealt with statistical data from 1990 to 2016 to establish a measurement model and has obtained empirical results that human capital,trade openness degree of service trade,infrastructure construction and national income per capita have positive impacts on the upgrading of service trade,foreign direct investment has negative impact on the upgrading of service trade,the economic environment's impact on the upgrading of service trade is not significant.Finally,according to the empirical results,the policy suggestions are put forward: China needs to attract high quality talents with the combination of training and introduction;The domestic service market needs to be opened to promote the development of modern service trade;China needs to improve the construction of network infrastructure to provide a favorable environment for the development of modern service;The government should deepen the institutional reform and improve the economic system to promote the upgrading of service trade.