Comparison Of The Competitiveness Of China And India's Service Industry In The Global Value Chain

Since the late 20 th Century,the service industry has been developing rapidly.In order to make China's service industry better integrate into global value chain(GVC)and enhance its competitiveness in GVC,this paper builds the revealed comparative advantage(RCA)index based on value added,GVC-position index and GVC-participation index by referring to the research results of Koopman et al..And using the data from 2000 to 2014 released by WIOD to compare the competitiveness in GVC of service industries in China and India with a view to providing effective advice for the development of service industry and its segments of China.The results show that:both China and India's RCA index based on value added are more than 1 in each year,and have a certain competitiveness in the world.However,compared China with India,India service industry is more competitive than China.From the segment industries,the RCA index based on value added of India on C40,C45 and C51 is obviously greater than that of China,and its advantages are obvious,while the RCA based on value added of China on C31 is obvious.Overall,GVC-position index of both China and India is small,and is in the backward position of the global value chain.The GVC-position index of China's service industry first decreased and then increased,which is contrary to the RCA index based on the added value.From the segment industries,The GVC-position indices of C26,C34,C40,C49 and C50 in China were negative in 2000 and were positive in 2014,and their GVC-position in the global value chain has improved.India's segment industries,which are in the backward position of the global value chain,have still not been able to change their positions and stay in the downstream for a long time.Both China and India are less involved in GVC and have a tendency to deteriorate further.There is no significant gap between the GVC-participation index of service industries in the two countries,but since 2011,the GVC-participation index of China has been greater than that of India,and the gap between the two countries has been expanding.From the segment industries,the gap between GVC-participation index of service industries in China and India is relatively large.In 2000,the GVC-participation index of some segment service industries in China was significantly greater than that in India because of its greater backward GVC-participation index.This leads to the fact that China is not competitive in the global value chain,despite its high GVC-participation index in some segments.In 2014,the GVC participation index of China's C34 and C53 were also significantly greater than that of India,mainly due to the significant increase in China's forward participation,but the competitiveness of the two industries is stillnot prominent.Therefore,three suggestions are put forward to improve the competitiveness of service industry: moderately increasing the openness of the service industry,strengthening the cultivation and introduction of qualified personnel,and coordinating development of various types of service industries.