A Comparative Study Of Chinese And Japanese Financial Service Trade

Financial service trade is an important component of service trade. The proposal of its formal concept could be dated back to the GATT Uruguay round in 1986. In 1994, WTO brought financial service into the field of trade liberalization in the final text of Uruguay round. In addition, in the financial service attachment of GATS, financial service is defined as any kind of service relating to finance that is offered by the financial service providers of one member party (a country or region participating in WTO financial service negotiation) to another member party. Today, the concept of "General Finance" is widely accepted, and financial service includes insurance and services concerning insurance as well as other bank and financial services (apart from insurance).The comparative study of Chinese and Japanese financial service trade comprises two kinds of comparison. The first kind mainly focuses on the analysis of the mutual influence of financial service trade and the increase of economy both in China and Japan. The problem will arise through comparison so as to give relevant suggestions to the development of financial service trade in our country. The second is the comparative study of the international competitiveness of financial service trades in China and Japan.As our neighbor country, Japan also belongs to East-Asian Economic Circle, and its position of economy and trade in the world is obvious. In recent years, the financial service trade in Japan has increased at a rapid speed. The import and export values of service trade in sectors of finance and insurance have taken its lead in the world, which has set a good example for our country. The comparative study of international competitiveness in both countries has realistic meanings because the weaknesses in the development of financial service trade in our country. In addition, the study on the relationship between financial service trade and economic growth is very meaningful. The study on the relationship between financial service trade and economic growth has a long history, however, few is based on empirical findings. One of the purposes of this thesis is to analyze the interrelationship between financial service trade and economic growth in China and Japan, to find out problems through comparison, and to put forward relevant suggestions on the development of financial service trade in our country.According to empirical analysis, this thesis comes to the conclusion that our country is not a powerful nation in the field of financial service trade. In this field, as far as international competitiveness is concerned, Japan is more powerful. Nowadays, the structure of international service trade is undertaking great changes. The shares of traditional service sectors are in constant decline, while those of newly emerging service sectors, financial service sector in particular, will increase greatly. In the future, the competition in service industry falls mainly on newly emerging service sectors, e.g. financial service. Therefore, to promote the capability of financial service trade in our country will be of great help in enhancing our international competitiveness in the whole service industry. According to the empirical analysis of the relationship between financial service trade and economic growth in China and Japan respectively, in China, the fast-developing economic growth has positive effect on the export of financial service trade, while the export of financial service trade makes no obvious contribution to economic growth. There is no obvious causality among the export of financial service trade, the open ratio of financial service trade and economic growth. However, the higher open ratio of financial service trade will promote the import of financial service trade, and the increase in financial service trade import will promote its export. In Japan, the import, export and open ratio of financial service trade all have obvious effects on economic growth, which indicates that the fast development of financial service trade has effectively promoted domestic economic growth.