Research On The Influencing Factors Of Sino-Japanese Intra-industry Trade In Services

When the center of gravity in the global economy has been tilting towards the services sector, this article is based on the relevant intra-industry trade (IIT) theory, starting with the trade between China and Japan, analyzes the development of Sino-Japanese intra-industry trade in services through calculating the services-related trade data, so as to know more about the level of development and competition of Chinese services trade and various service industries. Then the article analyzes the related influencing factors, and proposes the relevant policy recommendations, in order to promoting the further development of Sino-Japanese trade in services and the further enhance of Chinese service-industry competitiveness.The article takes an advantage of the relevant Sino-Japanese statistical data of services trade from 2001 to 2006 under EBOPS in the United Nations Service Trade Statistics Database (UNSTSD), and calculates Sino-Japanese GL intra-industry trade indexes in services according to Grubel-Lloyd formula. Overall, the mode of Sino-Japanese trade in services mainly shows an intra-industry trade pattern, with the nature of a certain level of the horizontal labor division. But compared to the overall level, there is still a certain gap between China and Japan vis-à-vis the world in terms of services intra-industry trade. The Sino-Japanese IIT level varies in different service sectors. Here are transportation services and communication services among those of the high level of intra-industry trade, and a high level of labor division. Those sectors which have a certain level of intra-industry trade and labor division are construction services, finance services, insurance services and other business services. Other service sectors mainly have an inter-industry trade pattern.The article explores influencing factors of Sino-Japanese intra-industry trade in services from the national characteristics point. The factors mainly include average market size, gap between market sizes, gap between per capita income levels, and average per capita income, etc. Through the model provided by gray system theory, the article conducts an empirical analysis on the association between these influencing factors and the Sino-Japanese intra-industry trade in services. Among the factors, the greatest impact is from the opening up degree of Chinese services sector, those which follow are the Japanese per capita income, the gap between Sino-Japanese per capita income, the scale of Chinese service industry, and the Chinese per capita income, in accordance with the association degree of factors affection.Finally, the article proposes related policy recommendations on the development of Chinese services trade. For instance, seizing the opportunity of service industries'cross-border transfer, China should develop service industries positively and open up the service sector more widely to the world. It also should develop different strategies according to service industry in different sectors and regions, to maintain the original advantages and to make competitive advantage innovation. The government plays an active role to further promote high-speed and stable development of Chinese service industry and service trade. Other methods are suggested, such as improving service-trade promoting system, strengthening the research on trade in services towards Japan and setting up the export promoting platform related, grasping the important opportunity of development of Sino-Japanese relation to develop the Sino-Japanese trade in services more actively, and strengthening further cooperation in the field of services trade between China and Japan.