Research On The Influencing Factors Of Competitiveness Of Service Trade In China

With the rapid growth of service trade output, it is playing a more and more important role in the economic growth and industrial structure update. Although the developed countries are maintaining the dominant position in the world service trade, it still can be seen that the service trade in China has leapt forward after its entry into WTO. The rapid growth not only shows the great potential of Chinese economy, but also reveals the limitation of Chinese service trade. At present, Chinese service trade still lags fairly far behind compared with the other countries in the world. As a result, it is academically important to make a research on the international competitiveness of service trade in China.By applying the qualitative and quantitative methods, this paper attempts to make a comprehensive evaluation and analysis on the international competitiveness of service trade in China, finds out the influencing factors and explores the methods to enhance the competitiveness of trade in service, so as to boost the development of the Chinese economy and service trade. The specific orders of the paper are presented in the following:Firstly, this paper defines the research background and practical significance of the research, and reviews the relative researches of international competitiveness of service trade from the previous scholars and experts in the first two chapters. After summing up the previous studies on this issue, it is pointed out that the present study on the influencing factors of competitiveness of service trade is not comprehensive in analysis, scientific in method and in-depth in empirical study. Therefore, this paper puts forwards index system of the competitiveness and compares with the other 8 countries, and analyses it with the method of Grey Correlation, in order to make quantitative analysis on the Chinese service trade competitiveness.Secondly, based on the above analysis and the National Diamond theory of Prof. Porter, this paper comprehensively analyses the present situation of service trade in China and picks out 8 different factors, then establishes the econometric model to describe the influencing factors of the service trade competitive in China with the method of co-integration.At last, this paper arrives at the following conclusions: (1) After the analysis of Grey Correlation, it is found that the Chinese service trade competitiveness is not strong compared with the other developed countries. But it is developing faster and faster and showing an increasing upward tendency in recent years.(2) Based on the National Diamond theory of Prof. Porter, this paper selects 8 different factors that will influence the competitiveness of service trade. After the analysis by the cointegration, Granger Causality test and Error-correction model, this paper finds out that the export of service trade has a long equilibrium relationship with the other variables, including the export of merchandise trade, per capita GDP, FDI and capital input. And the export of merchandise trade, the output of service industry and FDI is the reason of the change of the export of service trade. At the same time, the variables of the export of merchandise trade, per capita GDP, FDI and capital imput will adjust fastly to the export of service trade. With the above analysis, this paper puts forward the strategic suggestions for the promotion of the competitiveness of service trade in China.