Dynamic Comparative Advantage Escalation Study, With The Chinese Trade In Services

As an important component of the international trade, trade in services of a country's economic activities in the occupied an increasingly important position, has become one of the pillar industries of industrial restructuring and strategic alternative tools. The traditional theory of comparative advantage as a static manner on a particular sector of a country in international trade is competitive, very few theoretical study how changes in one country, one of its department of comparative advantage that is not static comparative advantage theory of evolution over time .The developing countries in the traditional low technological content and the labor-intensive service trade sector has a comparative advantage, and the developed countries in the high technological content, the human capital-intensive modern service trade sector has a comparative advantage. This paper studies how to enhance the comparative advantages of the developing countries with the dynamic changes of trade in services. This paper will introduce dynamic model of trade in services comparative advantage in the analysis of dynamic change, research and comparative advantages of trade in services within the Health and technological progress, technology spillover of contact, thus promoting the comparative advantages of china in trade in services escalation of the problem.The main body of this paper is composed of five sections. Section 1, Introduction to the main topics on the background of theoretical and practical significance, the literature review, research ideas and methods. Section 2, Introduces dynamic model. First, do not consider the spillover, it is possible to the developing countries in accordance with the initial static comparative advantages of specialization and trade (such as low technological content and specialized production departments) that indulge in permanent comparative advantage and trade patterns lock state. Initial technical conditions of static comparative advantage through learning by doing in sectors won the dynamic comparative advantage, resulting in the emergence of self-enhancement mechanism, and disappearing the mobility of comparative advantages, specialized division of labor and trade patterns. With the passage of time the dynamic comparative advantage change and the sector labor productivity of specialized production increase that make the initial decision, the specialized division of labor and trade patterns to be strengthened. Most of the developing countries in the low-skilled service sector have comparative advantages, self-enhance mechanism and the locking effect means that they will be difficult to change the current status of comparative advantage of trade in services. Next, according to existing technological spillover and imitation in that the dynamic model, we try to research the possibility eliminating such locking effect. By the possibility into reality, and depends both on the international advanced technological spillover, but also on the developing countries to imitate the efficiency of advanced technology. Taken jointly promote comparative advantages of the developing countries in trade in services of the dynamic evolution, while the imitating efficiency be impacted by the amount of a country's human capital. Section 3, we analysis, from the qualitative and quantitative two aspects, the development of China's trade in service and problems in it. Section 4, First, we analysis the efficiency of imitation (human capital) in FDI in the role of technological spillover, and the status of our nation's human capital and problems. Then, from the spillover effect of China's technology and FDI technology overflow factors, we analysis technological spillover feature in China's service trade, at last, doing binary regression with the foreign direct investment and human capital by China's high-tech export trade in services sector, we give some suggestions to China's service trade in accordance with the preceding analysis. Section 5, we give some suggestions to China's service trade in accordance with the preceding analysis.