The Comparison Of Local Market Effect In Service Trade Between China,the United States And Japan

Since the 21 st century,the trade in services has been developing very fast in the world.As our country's economy developing continuously and gradually add the international stage,China's trade in services has been growing rapidly.As is known to us,the development of trade in services cannot leave without the export of service.But in recent years,our country's trade in services has been characterized by deficit,and the trend of deficit has expanded year by year.According to the literature in the past,there has significant local market effect in manufacturing industry in our country.Local market effect:with the extension of the local market,a country will change from a net importer to a net exporter.The same,the service industry in our country,whether exists the local market effect,can play a role for our country's service trade exports.It apparently provides a new way to reverse China's service trade deficit phenomenon.And if the local market effect exists in service trade of our country,where is the differences of the local market effect between our country with those countries whose services trade developed fast?Therefore,this article selects the data of China,the United States and Japan,the time is from 2000 to 2014,the data includes service trade,GDP,capital endowments,demand structure,degree of liberalization of trade and other related data,introduced two factors,the enterprise heterogeneity and trade costs,then established the gravity model,explores whether the local market effect exist in trade in services of China,the United States and Japan.Empirical studies have found that,the local market effect exists in total service trade of China,the United States and Japan.In the study of departments,China's financial,insurance,government departments,exists local market effect.The United States's insurance,construction,finance,telecommunications,government departments exists local market effect.The Japan's insurance,finance,telecommunications,government departments exists local market effect.And in classification study,local market effect exists in productive services,but not exists in consumer services for all of the three countries.Finally,according to the empirical part of the article,which contains service trade local market effect test results of China,the United States and Japan,the article summarized the empirical results,and puts forward related suggestions on development of China's service trade in the future.