Labor Quality, Labor Quantity And Financial Service Export Of China

In recent years, service industry in developed countries experiences rapid development and has been the new driving force for economy. On the contrary, in China, with relatively few export amounts, the trade of financial service just stands in the start-up place. Many domestic scholars believe the key factor which affects China’s trade in service is the large number of labor with low wage. However, according to the American economist Michael Porter’s "diamond theory", production factors can be separated of basic elements and senior elements, while senior elements play a key role in the trade other than basic elements.Therefore, the purpose of this article is to find an answer of whether the quantity of labor is more important than the quality of labor or not. Qualitative analysis shows that the labor quality and the amount of labor both exert effect on the export growth, competitive power and enterprise geographical distribution of China’s trade in financial services; By trend analysis and Johansen cointegration test of the time series data from1997to2009, quantitative analysis shows that labor quality and quantity are both positively correlated to financial services exports, while the effect of labor quality is more evident. Granger causality test also shows that labor quality is more important. So the conclusion is come up that the quality of labor plays a more important role in the export of financial service.Based on the above, in order to promote the export of financial service, this article proposes some suggestions starting from accelerating human capital training.