Research On The Influence Of Home Market Effect On The International Competitiveness Of China's Service Trade

Nowadays,the scale of service trade has continued to expand,which has become an important factor in the global economic development.All the countries of the world are paying more and more attention to the international competitiveness of service trade.The stability and expansion of domestic market demand can promote domestic exports and form a home market effect.It is of great theoretical and practical significance to study the impact of the home market effect on the international competitiveness of China's service trade.First of all,this paper systematically combs the theories and empirical studies of domestic and foreign scholars on the home market effect and the international competitiveness of service trade.On the basis of this,it makes clear the starting point of this study.Secondly,the definition,the general existence,the empirical method and the mechanism of the home market effect are elaborated in detail.Then it introduces the development of China's service trade,and finds that China has a certain international competitiveness in the fields of finance,computer and information services,and attempts to explain the growth of these industries with home market effect.Immediately,this paper draws on and expands the gravitational model of Feenstra et al.(2001),and selects 36 main service trade partners of China,and uses panel data to test the effect of home market effect on the international competitiveness of China's service trade.The results show that in the 12 subdivision of service trade,there are significant home market effects in the four types of services trade,such as insurance services,computer and information services,financial services,maintenance and maintenance services.The industry with home market effects is far from enough in the China's service trade.Finally,based on the actual development of China's service trade,this paper puts forward some suggestions on how to use the home market effect to cultivate the international competitiveness of China's service trade and promote the development of China's service trade.