A Comparative Analysis Between The China’s And India’s Competitiveness In Service Trade

With the development of the world economy continues to shift to service industry,service trade is increasingly prominent in the world economy. Along with the rapiddevelopment of service trade, regional development is unbalanced problem has becomeincreasingly apparent. The developed countries dominate in the trade in services gradually.And services trade in developing countries the overall level of development lags behind, thetrade scale, trade structure and trade mode and a large gap compared with developed countries.After rapid development of economy in recent years,China and India has made outstandingachievements. China and India has been considered the world’s most promising emergingmarket and consumer market and has attracted widely attention. As two big developingcountries China and India are geographically adjacent and regional power in the development,labor resource and national comprehensive strength has many similarities. Although India’sservice trade in absolute numbers less than China, but with the development of worldeconomic structure to a higher level, the knowledge capital intensive service departmentbecome the backbone of the knowledge economy. Therefore, the competitiveness of servicetrade not only embodies in its overall competitiveness, more important is reflected in thedepartment of trade in services based on the knowledge of information technology of themodern service trade sector’s competitiveness. India’s modern service trade department in2011exports accounted for59.6%of its exports, than our modern service trade exportsaccounted for43.6%of trade in services exports16%higher. So, on a comparison of China’sand India’s services trade competitiveness has important practical significance.This article mainly from the following several aspects make a comparison of China’ andIndia’ services trade in competitiveness: first, the brief description of the sino-indian trade inservices competitiveness research background and significance, introduced domestic andforeign scholars on the research situation of trade in services; In the second place, from twoaspects of traditional service trade and the modern service trade in international trade inservices as well as China and India on the total amount and structure of trade in services;Third, choose the international market share, trade competition advantage index and revealed comparative advantage index of three concrete evaluation index of sino-indian trade inservices international competitiveness are analyzed; Fourth, based on Michael porter’scompetitive advantage theory, human capital, the level of urbanization, exports, foreign directinvestment and GDP per capita and six concrete service trade openness indicators representthe production factors, demand conditions, related industries and support, enterpriseorganization strategy, government role and opportunities from six aspects. By establishing themodel, main factors affecting the international competitiveness of service trade in our countryhas carried on the empirical research; Finally, offer policy suggestions form speed up the paceof the liberalization of trade in services, strengthen personnel training, play the synergy oftrade in goods and services trade and optimize the industrial structure, vigorously developmodern service industry to improve China’s service trade competitiveness put forward.