The Research On The Internationai Competitiveness And Influencing Factors Of China’s Financial Service Trade

In recent decades, financial service industry has become one of the core industries of modern financial development along with the acceleration of economic globalization and liberalization. The level of trade competitiveness has become an important benchmark to evaluate the competitiveness of a country. In this paper, the international competitiveness and influencing factors of financial service trade (FST) of China has been studied and discussed, aiming at finding out the key to efficiently improve the international competitiveness of FST of China, as well as promoting a stable, rapid and healthy development of the FST.In the first part of this paper, the research background and significance, content, methods and technical roadmap are introduced, followed by the definition of involved concepts, the review of the fundamental theory and related evaluation indices of international competitiveness, and a summary of the research status at home and abroad. Next, the current status of the FST of China is analyzed from trade pattern, trade scale and trade structure. The competitiveness of FST of China is evaluated by International Market Share, Trade Competitive Index and Revealed Comparative Advantage, and is compared with the competitiveness of FST of the U.S., the U.K., Germany, Japan and South Korea, concluding that the overall competitiveness of financial service trade of China is relatively weak and therefore does not possess any competitive advantage. Based on this primary conclusion, the author proceeded a theoretical analysis on factors of production and needs, related supporting industries, enterprise strategy structure and horizontal competition, government policies and opportunities with respect to Michael Porter diamond model. In addition,11economical variable indicators from year2000to2011are selected for Principal Component Analysis and Multiple Regression Analysis, followed by statistical tests, mathematical estimation and conversion, resulting in11economical variables which impact the direction of exporting FST of China and the impact level. Total assets, the actual use of foreign direct investment, the cultural structure of the employees in financial industry, Internet penetration in China, residents’ disposable income, total value of trading exports, the deposit reserve ratio launched by China Central Bank as well as the openness of FST can promote the export of FST of China, while the affect on production factor is the most intensive among the factors above. In addition, controlling the growth rate of GDP as well as reducing the market concentration and the financial institute loan rate is necessary to obtain a growth on exports of FST. The conclusion is generalized according to the research in the last part of this paper, followed by practical suggestions to the government and FST institutes on improving the international competitiveness of FST of China.