Research On The Impact Of China’s Service Industry Opening On Service Industry Employment

The contribution of the service industry in economic growth began to surpass that of the secondary industry since 2012,and the service industry played an increasingly prominent role in driving economic growth and increasing employment.In 2017,the United States started a trade war with China on the grounds that the huge goods trade deficit of China.The development of China’s secondary industry almost depend on export trade,while China’s trade in goods is suppressed by the United States in many field.Therefore,the trade war between the United States with China will reduce the second industry’s portion in the Chinese economy.In order to make up for the economic loss of the trade in goods,China must take measures to increase the amount of service trade,the further opening in service industry is imperative.Solving the employment problem is one of the objectives of China’s economic development.The domestic and international status of China’s economy is different from the past.Therefore,the research on employment effects in service opening field is the he key problem of services’ opening path selection.This paper takes 2005 to 2011 and2012 to 2016 as two comparative research periods.This paper adopts methods include combining qualitative and quantitative analysis and combining theoretical analysis and empirical analysis.Firstly,this paper qualitatively analyzed the effect mechanism of service industry opening on employment by analyzing the theories related to the influence of service industry opening on employment as well as the status quo of China’s service industry opening and employment.Secondly,on the basis of analyzing the representative indicators which measure the openness on service industry,combined with the data index,this paper select two index,Dependence on trade in services and FDI dependence in service industry,which are of great availability and applicability in represent the openness on services sector.By constructing econometric model and conducting empirical analysis,this paper concluded that the employment effect of service sector opening did substantive change in new period.Finally,according to the specific conclusions,this will put forward correlative suggestions to help policy formulation.In the empirical study,this paper classifies service industries from two aspects of technology level and knowledge level to observe the different performance of employment in different industries under the service industry opening.The results show that,while entering the new period,service export has a stronger effect onpromoting employment of medium and low-skill and non-knowledge service industry,but a weaker effect on promoting employment of high-skill service industry,and the effect on promoting employment of knowledge service industry is still not obvious.The substitution effect of service import trade on the employment of high-skill,knowledge-based service industry and medium and low-skill service industry has become less obvious,while the employment promotion of non-knowledge-based service industry has been strengthened.Thus,it’s obvious that an increase in China’s total trade in services will only lead to a decline in employment opportunities in the domestic service sector.As for the whole service industry,FDI inflow has become favorable to the optimization of employment structure,which has been confirmed in the optimization of employment structure of medium and low-skilled service industry.But the optimization of employment structure of high-skilled service industry,knowledge-based service industry and non-knowledge-based service industry has not been reflected.Finally,based on the full text analysis,this paper puts forward some policy Suggestions on the opening up of the service industry from the perspective of employment.The proposals include increasing imports of non-knowledge services,increasing imports of medium-and low-skill and non-knowledge services to promote employment growth in the service sector,and reducing restrictions on foreign investment in low-end services to optimize employment structure in the service sector.