Study On Influence Factors Of China's Financial Service Trade Competitiveness

According to the promises which China made when participated in the WTO, we have already open the whole Chinese financial service market since the end of 2006. And it means that our financial service trade has entered the era of free competition. Because under the protection of government for a long time, our financial services industry have few kinds of financial services products and poor competitiveness. With the openness of the financial services market, we will enter to the competition of the international financial services market, and it is necessary to improve the competitiveness of our financial service trade. Thus, studying on the influence factors of the competitiveness and then giving some measures to improve it are extremely important. Simultaneously, it is the main issue which will be discussed in this paper.This paper can be divided into the following parts. First, this paper reviews the literatures related to the issue, which provide direction of this paper. Then this paper analyze the factors of the competitiveness of Chinese financial service trade, including product factor, demand condition, the relevant and support industry, corporation strategy, government and opportunity. The first four factors are the endogenous factors. Under common circumstances, competitiveness of Chinese financial service trade will improve if there are more abundant product factors, larger demand, smarter corporation strategy or better development of the relevant and support industry. After that, this paper studies the trend of the competitiveness of Chinese financial service trade during 1998-2008 years, and learns that the competitiveness had kept low and no significant growth in this period, and finds out some reasons. Next, this paper makes the exports to represent the competitiveness of China financial service trade, and selects eight variables from above factors, then does an empirical analysis. The result shows that the capital in produce factor is the most important influence factor of the competitiveness. Finally, this paper gives some advices which can improve the competitiveness of our financial service trade on the basis of theoretical and empirical analysis results.