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Technology Change, Factor Accumulation And Dynamic Change In Comparative Advantage In Service Trade Of Developing Countries

Posted on:2005-09-18Degree:DoctorType:Dissertation
Country:ChinaCandidate:P ShenFull Text:PDF
GTID:1116360125967287Subject:International trade
Abstract/Summary:PDF Full Text Request
With its character of factor density, income elasticity of demand, growth of productivity and links with other industries, services, especially modern services play an important role in a country's economic growth and evolution of industries structure. Meanwhile, the blooming of services and service trade has made the service trade become an important international economic activity besides goods trade and foreign direct investment (FDI), and it will become a focus of international competition in the future. Because of this, comparative advantage in service trade means so much for a country's prospect of trade and economic development. However, developing countries have no comparative advantage in modern service sectors. So it's necessary for them to explore a way to reverse and change this status quo.Unfortunately, compared with the theory of international trade in goods, the search in service trade is too laggard to catch up with the development of practice. Therefore, it is not only necessary but also important for developing countries to study how to improve their comparative advantage in service trade.Now developing countries have comparative advantage in traditional service sectors with low-tech and labor density, while no comparative advantage in modern service sectors with high-tech and human capital density. Confronting this situation, this paper will try to find out the solution from two aspects, that is, technology change and factor accumulation.So the basic logic in this thesis is as follows: we mink the comparative advantage is the cause of international trade in services as same as the international trade in goods. And the determinants of comparative advantage are the engine that can make comparative advantage change. As we all known, comparative advantage comes from the different level of technology (i.e. productivity) and factor endowments of different country. Because there is huge difference in technology level and factor endowments between developing countries and developed countries, technology and factor endowment will determinate the different comparative advantage in service trade of this two types of country. Therefore, the study in this thesis will follow two paths, i.e. technology change and factor accumulation, to be conducted. For the theoretical conclusion we can arrive at, empirical examination will be conducted to providemore explanatory and persuasive power.The thesis consists of five chapters in all.At the beginning of this dissertation, chapter one, introduction, we articulate the theme and the necessity of our study firstly. Secondly, we review the existing research on the same theme and give the viewpoint a further support that the theory of comparative advantage can be entirely used in service trade. Then, this chapter introduces the logic paths, the structure arrangement, the creation and limitation of this dissertation.In chapter two, the thesis states the current situation of comparative advantage in service trade of developing countries as the background of the coming analysis. Firstly, we illustrate the important function of modern services based on endogenous economic growth theory and industrial theory. We think the modern services drove by technology progress are the core of services, and technology progress can fade the special characters of service. Secondly, we give a comparative analysis on symmetric revealed comparative advantage in service trade of developing countries and developed countries by selecting nineteen countries as samples, including nine developed countries and ten developing countries. At last, we draw the conclusion that developing countries have comparative advantage in traditional service sectors with low-tech and labor density, while no comparative advantage in modern service sectors with high-tech and human capital density.In chapter three, we consider about technology change's influence on the dynamic change in comparative advantage in service trade of developing countries. We define the technology change as a combination of endoge...
Keywords/Search Tags:service trade, comparative advantage, dynamic change, sector-specific(local-specific) learning-by-doing, lock-in effect, skill spillover, human capital, efficiency of imitation
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