A Comparative Study On The International Competitiveness Between China And India Trade In Services

Nowadays,the international competitiveness of a country’s service trade has become one of the main factors to measure its comprehensive national strength.As two major developing countries,China and India are accompanied by economic growth and the development of service trade.At present,the calculation of the international competitiveness of service trade between the two countries is mostly based on the gross value method.However,the gross value method can repeatedly calculate the value of intermediate products in the service trade activities of the two countries,which is different from the real results and is liable to cause statistical errors.The value-added method can calculate which of the total value of service products of the two countries are created by their own countries and which are created by other countries.Therefore,in order to more accurately analyze the actual situation of service trade between the two countries,it is necessary to use value-added method to measure the competitiveness of service trade.The main contents of this paper are as follows:Firstly,the overall and sub-industry development of service trade between China and India is elaborated;Secondly,the international market share(IMS),display comparative advantage index(RCA index),trade competitiveness index(TC index)and net export display comparative advantage index(NRCA index)are used to compare the two countries as a whole and between industries.Then,based on Porter’s theory of national competitive advantage,this paper empirically analyses the influencing factors of the international competitiveness of service trade between the two countries.Finally,the corresponding conclusions are drawn:firstly,compared with the value-added method,the gross value method overestimates the domestic added value of imports and exports of services trade between China and India;secondly,under the gross value method and the value-added method,China is bigger than India in terms of both export scale and export growth rate,but the gross value method exaggerates the gap between India and China in these two aspects;secondly,through the actual situation,the gross value method exaggerates the gap between India and China in terms of the empirical analysis finds that GDP and the openness of trade in services have a positive impact on the international competitiveness of trade in services between the two countries.Human capital is positively affecting the development of service trade between the two countries,but the positive effect of Chinese human capital on the development of domestic service trade is greater than that of Indian human capital.Finally,some feasible suggestions are put forward to China from the aspects of tapping domestic service demand,expanding two-way openness of trade and establishing hierarchical human capital system.