Chinese Service Industry Trade Study

Since 1960s, the study on intra-industry trade (IIT) has been emerging in larger numbers. To the present, IIT has become an integrated theoretical system. The development of IIT can improve the competitiveness of industry, and is an important way for the country to achieve its comparative advantages.With the deepening social division of labor, services and trade in services have been more and more important in the economic and social role. In current situation, we are affected by financial crisis significantly. To develop services and trade in services is meaningful for China to achieve the macroeconomic objectives-capital growth and employment promotion. However, because of statistical data and other constraints, most of the studies on intra-industry trade are concentrated in trade in goods, and the study on intra-industry trade in service is very little. So the study on intra-industry trade in services has important theoretical and practical significance.Firstly, the paper introduces the basic concepts of intra-industry trade in services in Chapter2, such as the definition, classification and indicators to measure the level of IIT. And then analyzes the main motive factors of intra-industry trade. At the end of Chapter2, introduces and reviews the home and abroad empirical studies on IITChapter3 analyzes the current status of China's IIT in services by calculating the GL index, MIIT index and HIIT and VIIT index, from the entire service industry and sub-industry perspective. The results are as follows, the intra-industry trade in service of China is high from the overall perspective of service industry; the intra-industry trade in service of labor-intensive industries is higher than that of the technology-intensive industries; China's intra-industry trade in service is focused on Horizontal intra-industry trade. Considering the specific characteristics of trade in services, the second part of Chapter3 analyzes the influencing mechanism of the level of economic development, trade in goods and services sectors to the level of intra-industry trade in services, which lays a theoretical foundation for the following empirical research.Chapter4 makes quantitative analysis between intra-industry trade in service and the main factors by using ADF Test, Johansen Test, Error Correction Model and Granger Causality Test. The result reveals that: the volume of trade in goods and the opening degree of service industries have positive influence on intra-industry trade in services, but GDP per capita has negative influence, domestic income distribution and international income gap can explain it.Finally, Chapter5 puts forward policy recommendations on how to promote the IIT from the macro and micro perspectives.