A Study Of China's Trade In Producer Services

As international division of labor has been continuously developing since 1980s, the rise of service economy has become a notable feature of economy in the today's world. Producer service industry is separated from the service sector in manufacturing industry and become an emerging industry with typical characteristic of high-tech, high value-added, high human-capital and high-growth. Producer service industry has become a leading force in promoting economic efficiency, which guides the other industries and plays an increasingly important role in economic growth.As a developing country, China's manufacturing industry develops quickly, but the service industry does not develop simultaneously, and the level of service is low. Therefore, the trade in services runs a large of deficit, especially the trade in producer services with high technique and knowledge, which lacks international competitiveness. Nowadays, China's producer service industry and trade have become the weaker link in the industry value chain, which directly affect China's international division of labor and the distribution of profits in the period of economic globalization. Therefore, the in-depth study of China's development of trade in producer services, its external competitiveness and internal contribution, and exploring the constraints of China's trade in producer services have great significance.Firstly, this paper begins with a summary of the related researches home and abroad, reviewing the relevant literatures on producer services, the theoretical basis of competitiveness in service trade and the relevant theories of trade in producer services and economic growth. Secondly, the paper deals with the description of China's service trade, and focus on introducing the whole, import and export structure of China's trade in producer services. Thirdly, the paper analyzes the external competitiveness level of China's trade in producer services quantitatively by using the competitiveness index system. After that, the paper gives a qualitative analysis of the six factors which impact the development of China's trade in producer services with the diamond model. Fourthly, this paper collects the data and uses the econometrics' tool to test the correlation between trade in producer services and China's economic growth, coming to a conclusion: the import and export of producer services both have a strong positive correlation with GDP. However, the import has a much larger pulling effort on domestic economy than that of export. Finally, the paper analyzes the problems in China's trade in producer services, and gives targeted policy recommendations.