Study On The Development Of Service Industry And Service Trade In Guangdong And Hong Kong Under The Framework Of CEPA

The paper begins with a comprehensive summary on the study status on service trade home and abroad; a brief account of the establishment and evolution process of CEPA, the framework agreement on CEPA and the study status on CEPA by domestic and foreign scholars.In the second part, the paper, on the basis of the study status home and abroad, makes an analysis of the development characteristics of the service trade in Guangdong with the Pearl River Delta Area as a representative, the promotion role of CEPA in Guangdong economic development. Furthermore, it anticipates that CEPA will not only enable Hong Kong to bring about an even greater impetus to the inland service trade, but also exert strong impact on inland service industry which is still in its initiation phase.In the third part, the paper, by raising concrete evidence, examines the promotion role of the net export of Hong Kong service trade to the GDP of Guangdong. On the other hand, the net export of service trade of Guangdong is obviously in direct proportion to Hong Kong's GDP. The regression analysis on employment indicates that though the introduction of service industry from Hong Kong will exert some impact on that of Guangdong, its advantages on employment rate overweigh its disadvantages. Given the fact that the employment rate in Hong Kong is obviously in direct proportion to the net export of Guangdong commodity trade, it can be seen that mutual trade between Guangdong and Hong Kong serves to increase employment for both sides.In conclusion, the paper makes a thorough analysis on the main challenge in the Guangdong-Hong Kong cooperation in service trade, that is, the establishing system; the new challenges in future cooperation, and puts forward some policy proposals on the Guangdong-Hong Kong cooperation in the service industry.