China's Service Industry Trade Research

In the late 1970s and early 1980s, the intra-industry theory system with the core ideas of the scale economy and product differences had been establishing gradually, and western scholars began to empirical study in this area. However, in more than 20 years after IIT emerging,most economists believed that the intra-industry mainly took place in a similar factor endowments between countries, and their attention also focused on studing in the developed counties. In the industry study, the reaserch about manufacturing the intra-industry accounted for a high propotion, but service industy is lack of research, most of which stayed in the level measure of the intra-industry.In the light of these consideration, this paper summes up the basic-industry trade theory, impact factors, and index measurement. Followed by data ,and assisted by graphics, this detailed analysis the current development of the service industry and reality of the IIT in service industry, introduce the corresponding service industry and its impact on the intra-industry development, and divides service industry into two types: labor-intensive service industry and capical and technology-intensive service industry, and select representative sectors to be analysized empirically. The main conclusion is:The proportion of Chinese service industry output accouting for GDP is still below the world average, and accounted for more in the service GDP still concentrated in labor-intensive industry, the one of capical and technology-intensive service industry is very low.The market structure is also be polarized, labor-intensive industry is fragmenting,and capical and technology-intensive service industry is over-centralized, even in some of which the pattern is similarly complete monopoly.Acoording to the correction about MIIT index to GL index, we can see that Chinese service intra-industry has been continuing to rise, but the increase is relatively slow, accompanied by high volatility.Through the analysis of the impact factors on the intra-industry in Chinese typical service sector from 1990 to 1996 by the multiple linear regression model. It is concluded that the impact of the foreign direct investment, differences in demand, and per capita income is inconsistent. The market structure is less significant or not.Finally,based on the empirical conclusion, measures are put forward: the government should balance import and export, develop products export, strengthen macro-policy guidence and support, allocate industrical structure optimally, cultivate high-income elasticity industry .The enterprise should attract greater foreign direct invest, to develop different products.It should be innovation in theory and application to explore these. Particularly in the context of the trade data of the domestic typical service industry, our study further broken down into the impact on Chinese services intra-industry trade with more high value innovation and value. However, it is difficult to carry out research on the specific trade country due to lack of data. The research in future is about services intra-industry trade between China and specific trade country.