Research On Coupling Between Producer Service Trade Development And Industrial Structure Optimization In China

In an open economy, trade is of great significance and far-reaching impact on acountry’s economic development. Since the1980s, with the rapid growth of globalservices trade, the scale of world trade in services continues to expand and the structurechanged profoundly. The share of consumption service trade declined and the humancapital-intensive, high technology content and high value-added producer service tradehas become the main part in international services trade. The producer service trade hasan important influence and plays an increasingly important role in economicdevelopment. Its association with the industrial structure is gradually enhanced,particularly in the adjustment of industrial structure and upgrade. China has achievedgood results by producing labor-intensive goods production in accordance with theprinciple of comparative advantage while the industrial structure has also been astep-by-step optimization and upgrading since the reform and opening up. Nowadays，Chinese Structural adjustment has become a top priority to achieve sustainabledevelopment. China’s adjustment and optimization of industrial structure need foreignresources and markets, producer service trade has practical significance to industrialstructure, while influenced by it, so it is worth us to explore the relationship of them.The article explores the relationship between producer service trade and industrialstructure under the circumstance of reform and opening up continuing to deepen and thecritical period after accession to the WTO ten years in order to consistent with theeconomic growth mode transformation. This article first explores the theoretical basis forindustrial structure and producer service trade, and then makes a deep realistic analysis ofboth producer service trade and industrial structure adjustment. After that, it creates theinfluence mechanism framework of coupling development between producer servicetrade and industrial structure adjustment theoretically and then finds out the problems inthe coupling development of them by contrast analysis. In the empirical analysis section,the article uses the Vector auto-regression model, impulse response and variancedecomposition method to measure the relationship between them. Through the empiricalanalysis, we find that they affect each other and producer service trade’s influence to the industrial structure is "immediate". It means that producer service trade is the reason ofindustrial structure change in some degree but its influence is limited. On the other side,the producer service export ration is influenced positively by industrial structure and thiseffect reflects the relatively slow, then gradually increase over time, its impact isrelatively large.The paper structure is organized as follows.Chapter Ⅰ is the introduction. First of all, it discusses the background andsignificance of this study. Secondly, the domestic and foreign classical theory andempirical researches on the study of producer service trade and the industrial structureare reviewed. And then it proposes research content, methods, ideas, characteristics of theresearch and points out the deficiencies and defects in the study.Chapter Ⅱ defines research objectives and explores the theoretical basis and logicalstructure of the producer service trade and industrial structure optimization, from atheoretical perspective. It intends to find out the internal relationship between producerservice trade development and industrial structure optimization.Chapter Ⅲ focuses to explain the influence mechanisms between producer servicetrade development and optimization of industrial structure. Through analysis we findsthat producer service trade’s influence mechanisms to industrial structure includes thefollowing aspects, they are the effects of changes in supply and demand, resourcereallocation effect, the external scale and competition effects, technological spilloverseffects, employment structure effect, Modern Factor Accumulation effect and so on. Inthe meanwhile, it analyses how industrial structure determine the structure of theproducer services trade and how to show their advantages through foreign trade inservices from exogenous static comparative advantage and endogenous dynamiccomparative advantage angles.Chapter Ⅳ introduces the realistic issues related to producer service tradedevelopment by using producer service trade scale, Import and export structure andbalance of trade. And then it introduces the realistic issues related to optimization ofindustrial structure. It mainly analyses the realistic development of it by each industryratio, analyses the second industry inner structure from light and heavy industriesdivision perspective, and analyses the manufacture industry structure from high-technology perspective. Finally, it analyzes the process of Chinese industrialstructure adjustment and optimization from the perspective of the structure ofemployment.Chapter Ⅴmakes coupling analysis of production service trade development andindustrial structure optimization. And then it makes an international comparison ofproduction service trade development by MI and TC index. And a comparison of China’sindustrial structure optimization by each industry’s contribution rate to GDP and thecomposition of employment in different countries. Finaly, this paper identifies theproblems in Chinese coupling development between producer service trade and industrialstructure optimization on the basis of comparative analysis.ChapterⅥ is the empirical analysis section. It makes time series data stationaritytest, cointegration test and variable causality test and then sets up variable vectorautoregression model, using Impulse response and variance decomposition to analyze thedynamic relationship between the coupling development between industrial structure andproducer service trade. Our conclusion is that producer service trade and industrialstructure variables are the co-integration relationship. In other words they have along-run equilibrium relationship, and influence each other from the different degree.ChapterⅦ is the conclusions and policy recommendations.It summarizes the fulltext, given a reasonable explanation on the basis of combined with the theory and China’sactual conditions. This article recommends that we should promote the development ofproducer service trade in many aspects to better stimulate the optimization of industrialstructure.