The Research Of International Competitiveness Of Service Trade In Beijing City

In 1994, General Agreement on Tariff and Trade (GATT) Uruguay Round negotiation has passed through General Agreement on Trade in Service (GATS), which symbolizes the world economy has entered into a new historical period-service economy. Service trade shows its more and more important role in countries economic development, becomes an important standard to measure a country's international competitiveness, and its competitive strength declares publicly a country's development prospects for foreign trade in the future.Just under this background, the paper utilizes the theory of industrial international competitiveness in service trade area, does research on the problem of international competitiveness of service trade in Beijing. First, this article illustrates the current developing situation of service trade in Beijing, then uses Mr. Porter's "State Diamond" model to analyze key factors which could significantly affect international competitiveness of service trade and digs out the potential competitive advantages. Furthermore, this paper sets up an index system based on the service data of import and export, which is composed of four indices such as Comparative Advantage Index, International Market Occupancy Factor, Export Increased Advantage Index, Revealed Comparative Advantage Index and makes a close industrial comparative analysis of service trade competitiveness of Beijing.On the basis of service trade theory and the specific situation in Beijing, a model, including the factors of human-capital, foreign direct investment and urbanization, is formed to analyze influential variables in Beijing's global competitiveness in service trade. The regression outcome indicates that these three variables are of high correlation with Beijing's global competitiveness in service trade. By changing the means of regression, one could figure out that human-capital is of most crucial importance among the three variables as far as Beijing's global competitiveness in service trade is concerned.Aiming at the above three factors, the countermeasure is proposed in this paper as follows briefly: forming diversified system of investment entity so as to alter the deficiency and inefficiency; investing more money in infrastructure construction to enlarge the capacity for service industry in urban area; improving the reform measures, especially unifying the service and labor so that factors could flow without barriers, to maximize the technology-spillover effect from FDI.