Research On The Impact Of Producer Service Trade On Economic Growth In China

In the four decades of reform and opening,China has been deepening its trade with other countries in the world.Compared with the Merchandise Trade,Service Trade has assumed a predominant posture.Producer Service Trade has become an inevitable trend in the development of Service Trade.The development of Producer Service Trade is not only conducive to the rapid growth of producer services in the country,but also to the optimization of Service Trade structure.At present,China’s Producer Service Trade is in a high-speed growth stage,and the total import and export volume is growing rapidly.In recent years,it accounts for more than 50% of Service Trade.Of course,there are some problems such as the imbalance between sectors and weak competitiveness in global trade.Therefore,it is necessary to conduct in-depth research on China’s Producer Service Trade,observe its impact on economic growth,and give full play to its role in promoting economic growth.Firstly,this paper combing through the existing research,then defines the concept of Producer Service Trade,and then studies its impact on economic growth.Secondly,the empirical analysis has study the impact of total trade,imports and exports of Producer Service Trade on economic growth in China.Then establish the VAR model,using impulse response function and variance decomposition to further study the impact of China’s Producer Service Trade on economic growth.The conclusion shows that there is a long-term equilibrium relationship between the total trade,import and export of Producer Service Trade and economic growth in China from 1998 to 2017.The specific sector trade has different effects on economic growth,but it contributes to economic development as a whole.Finally,this paper puts forward corresponding policy recommendations on the basis of theoretical analysis and empirical research.