A Study Of The Relationship Between China's Human Capital And Comparative Advantage In Trade In Services

With the global evolution of industrial structure and the rapid development of international business, one country's economic prospect is greatly influenced by the competitive power in trade in services. Currently, most academic results and experience of the developed countries have been proved that human capital is the key factor which can determine the comparative advantages of trade in services. As a backward developing country, China is abundant in labor resources, but lacking of human resources, its comparative advantage in trade of services concentrates in labor-intensive sectors. On the basis of summing up research results and collecting a large number of statistical data, this thesis analyzes the relationship between human capital and China's comparative advantage in trade in services.The thesis falls into five chapters. It begins with the introduction to the necessity and arrangement of this paper. The five chapters make up the main body: ChapterⅠintroduces the static sources and dynamic changes of comparative advantage in the field of service trade. ChapterⅡis devoted to the overall analysis on China's current situation of human capital. ChapterⅢmainly presents the comparative advantage of China's trade in services. ChapterⅣmakes an empirical test of the relationship between human capital and comparative advantage in trade in services. The last chapter is designed to draw the conclusion.The main conclusions are as follows: Firstly, human capital is making a great influence to the trade in services than other factors now. Secondly, compared with the developed countries, China has the advantage in labor resources and the disadvantage in human resources. Thirdly, China's comparative advantage in trade in services concentrates in the labor-intensive sectors, and the lack of human capital is the main reason. Therefore, the government should pay attention to this problem, and fully realize the importance of human capital, increase the education investment and make great efforts to promote comparative advantage in trade in services.