Research On Service Trade’s Effect On The Evolution Of Industrial Structure

This paper focuses on the influences of service trade on the evolution of theindustrial structure. The thesis is based on the objective reality of the rapiddevelopment of international trade in the area of services, through a review of thetheories of international trade, service trade and industrial structure,then discussesthe influences of service trade on the evolution of industrial structure in differentdevelopment stages.First of all, the paper analyzes the impact of trade in services on industrialstructure evolution. This paper argues that: trade in services is mainly to promote theevolution of industrial structure by promoting the accumulation of capital, speedingup technological progress and adjusting the structure of demand, but in differentstages of economic development, the dominant economic effect makes different. Inthe stage of industrialization, trade in services, promote the development of thesecondary and tertiary industries mainly through the promotion of capitalaccumulation and adjusting of the structure of demand, resulting in improving thepercentage of output value of the Secondary industry and the Tertiary industry inGDP, and reducing the share of primary industry in GDP; in developed economiesstages, trade in services, promote the development of secondary and tertiaryindustries mainly through technological innovation and human capital, but the affectto the tertiary industry is greater than the secondary industry, thus the share oftertiary industry in GDP increased, while the share of primary and secondary industryreduced.Secondly, the paper analyses the status of the world service trade and industrialstructure in a comparative way. It selects ten typical countries such as the UnitedStates, Britain, Germany, Japan, Italy, China, India, Indonesia, Brazil and Vietnam tocompare the status of service and industrial structure. With the panel data of thesample countries and the use of cointegration test method, it proves the long-termequilibrium relationship between service trade and industrial structure. It further uses vector regression method to test the impacts of the service trade on the Primary industry, the Secondary industry and the Tertiary industry of a country. Except Germany, Brazil and Vietnam, the empirical results of other seven counties are the same as the theoretical analysis.Finally, according to the conclusions of the theoretical and empirical analysis, the paper puts forward some recommendations for China to accelerate the development of service trade in order to promote the upgrading of industrial structure.Meanwhile, it should coordinate the development of various industries, to ensure the economic grow steady.