The Research On Economical Effect Of Telecommunication Service Trade Liberalization In EU

As the most developed economic entity of telecommunication services trade in world, EU has forwarded on the road of telecommunication liberalization for decade, its reformation and achievement has no doubt successful and focused by all people's attention. As a developing country, China has been promoting its telecommunication's reformation and development. Although the scale has made China one of the advanced telecom countries in world, but it can not compare with EU in the term of any index of telecom because of the large population. China conducted the telecom re-organize scheme the second time in September, 2008. The structure of the telecom market will change from the former "5+1" into three oligarch corporation competition. How to operate better under the new structure? As the development of liberalization, what effect will be brought to the producers and the consumers? And how about the effect on the whole economy? This paper analyze the effect on economic and welfare of producers and consumers of liberalization of telecommunication service trade in EU, on which basis bring up with enlighten tips and policy suggestions for Chinese telecom industry. .This paper base on the economic growth theory of service trade liberalization, research and analyze the processes features and main measurement of the liberalization of telecom service in EU. The author take the PP-ZZ model which was established by Paul Krugman to analyze the static state of the effect of liberalization, then take the frequency tools method which was established by Hoekman to set up the liberalization index and calculate related figures, then take these variables into one econometric model to analyze the effect.