Development Of Service Trade At The Provincial Level In China Influencing Factor Research

With the development of world economic servitization and service economy internationalization,service trade has become a new engine to promote the economic growth of all countries in the world,and the focus of global trade and investment rules has accelerated from the field of goods trade to the field of service trade.Since 2012 to2021,China’s total imports and exports of service trade have increased from US$482.9billion to US$821.2 billion,ranking second in the world for eight consecutive years.In recent years,although China’s service trade has developed rapidly,there are still many challenges: on the whole,the proportion of service trade is low,the export quality is not high,the long-term deficit of service trade,and the development of regions and industries is unbalanced and uncoordinated.From a regional point of view,the development base of service trade in various provinces(municipalities and autonomous regions)in China is different,and there are great differences in the development level of service trade in different provinces(municipalities and autonomous regions).At the same time,combined with the analysis of existing literature,there are few literature to study the influencing factors of service trade development at the provincial level in China.Therefore,from the perspective of China’s provinces,this paper explores the influencing factors of the development of service trade,hoping to better promote the sustainable development of service trade in various provinces(municipalities and autonomous regions)in the future,and then enhance the overall strength of China’s service trade development.From the perspective of the development of service trade at the provincial level,this paper conducts research through literature research method,comparative research method and empirical research method.This paper first sorts out the relevant literature at home and abroad on the development of service trade at the level of China and provinces and the influencing factors of service trade.Secondly,the relevant concepts,theoretical basis and applicability of classic international trade theory to service trade are expounded,so as to apply the national Diamond Model to the development of regional service trade.Then,the development status and competitiveness of service trade at the Chinese and provincial levels are analyzed.Then,based on the theoretical framework of Diamond Model,relevant indicators were selected and the panel data of29 provinces,municipalities and autonomous regions in China from 2017 to 2021 were empirically analyzed through the Two-way Fixed-effect Model.The results show that the openness of service trade,the development level of goods trade,the actual utilization of foreign capital,the major government policies on service trade,the level of transportation infrastructure and the per capita added value of service industry have significant positive effects on the import and export volume of service trade,and the urbanization level has the greatest impact on the import and export volume of service trade in the empirical model of this paper,and it has a negative impact.Finally,according to the empirical analysis results,corresponding policy suggestions are put forward,including: the central,western and northeastern provinces should pay more attention to the development of service trade and accelerate the completion of the shortcomings of service trade development;Accelerate the balanced and coordinated development of trade in services and optimize the trade structure;Increase the opening up of regional trade in services and smooth the channels for the development of trade in services;Increase the construction of transportation infrastructure and promote the integrated development of trade in services and trade in goods;Create a good business environment and improve the efficiency of foreign capital utilization;Promote the formulation and implementation of inclusive policies for trade in services.