A Comparative Analysis On The International Competitiveness Of Knowledge-intensive Business Services Trade Between China And India

Along with the rapid development of global economy and the continuous reinforcement of the Knowledge Economy Era, it has shown new trends and characteristics in the development of trade in services among which the international competitiveness of trade in Knowledge-intensive Business Services (KIBS), which focuses on the knowledge and its application, has increasingly became the important criteria to evaluate the competitiveness and development potential of a country as a whole. Nowadays, the economy of most developed countries is mainly driven by trade in KIBS, and international division and transfer of such industry is unfolding. Against such international background, the amount of China’s trade in KIBS has seen a good momentum of accelerated increase. However, at the same time, we should also be aware of the unreasonable structure, chronic trade deficit and lack of high-tech elements have led to the relatively weak competitiveness of trade in KIBS in China. India, as another developing country, having many backgrounds comparable with China, has made remarkable achievements in its development of trade in KIBS which specially deserve our attention to study and learn.In regard to the comparison and analysis of international competitiveness between China and India, some scholars have already done some studies and made some achievements. This dissertation, based on the results gained by former scholars, made further in-depth study on the comparable analysis of competitiveness of trade in KIBS between China and India. Firstly, it organized and summarized the existing research conclusions, and revealed the research contents, research methods and innovative points of this paper. Secondly, it introduced the meaning of Industry Competitiveness, and listed some existing index systems and methods which are used to evaluate the Industry International Competitiveness, and then extended to the study on the international competitiveness of trade in services. Thirdly, based on large amounts of research data, this paper, through total analysis and structure analysis, individually presented China’s and India’s development of trade in KIBS and made some comparison between them. Fourthly, through seven statistical indicators which are classified in three aspects, Market Share, Trade Competitive Power Index and Revealed Advantage Index, it used the quantitative statistics and index analysis to compare China’s international competitiveness of trade in KIBS with that of India. The main innovation point in this dissertation lies in that this paper focused on the comparison of the development and international competitiveness of trade in KIBS between China and India, and when measuring the international competitiveness, it no longer simply used one index or several indexes to analysis, but with the aid of a set of index system, which made the study conclusion more comprehensive and more accurate. Finally, the paper analyzed the reasons those caused the differences on the international competitiveness of trade in KIBS between China and India through six aspects, and also proposed some suggestions to improve China’s competitiveness of trade in KIBS.