Research On The Impact Of Human Capital To The Comparative Advantage Of China’s Service Trade

With the development of economic globalization, the speed up of the world’s industrial structure, the in-depth use of science and technology in the service trade, The structure of world trade in services showing a trend of gradually sloping to the modern trade in services from the traditional services trade. Throughout the development status of trade in services in the United States, India and other countries, we can easily find that although the total growth in recent years more obvious, but the service trade structure is still unreasonable, and compared to developed countries, the international competitiveness of china is still relatively poor. Western scholars’ research shows that the comparative advantages of the modern trade in services do not only depend on the traditional comparative advantage theory of natural resources and other factors, but also more rely on human capital factors. Therefore, in order to explore the impact of human capital on the comparative advantage of China’s service trade, and vigorously develop China’s trade in services, and enhance the competitiveness of China’s service trade, based on the in-depth analysis on the human capital theory on trade in services at home and abroad, combined with analysis of the status quo of China’s service trade development, the author proposed the mechanism of the human capital of China’s service trade, On this basis, compared to the services trade development of the United States and India, the author made a in-depth comparison. In order to verify the human capital effect on China’s service trade, based on theoretical analysis, the author constructed an Error Correction Model, with exports of services trade as explanatory variables and physical capital, labor, human capital investment as independent variables, and conducted an empirical analysis in accordance with the theoretical analysis. In the end, based on the empirical results, as well as the successful experience of development of trade in services of the United States and India, the author put forward useful suggestions to the development of china’s services trade, such as actively participate in international negotiations and collaboration, safeguard China’s service trade to provide the legitimate rights and interests; increase financial education expenditure, optimize its structure, improve the scientific quality of the national labor force; learn foreign research mode, eliminate obstacles to free movement of labor, promote the rational allocation of human capital; reinforce service trade legislation and the appropriate policy recommendations to increase intellectual property protection and so on.