Empirical Study On Infrastructure And Service Trade Dynamic Comparative Advantage Of Developing Countries

Since the1980s, the international service trade has developed rapidly, not only the amount, but also the structure, service trade is playing a more and more important role in world trade. In the pattern of international service trade, developing countries are at disadvantage position, difficult to compete with the developed countries. If developing countries want to be in a strong position in service trade, they must realize the dynamic change of the comparative advantages in service trade. According to the research of scholars both at home and abroad, there are two basic ways to realize the dynamic change, the factor accumulation and technology progress. And a country’s infrastructure investment can not only promote the accumulation of various factors of production, but also have certain influence on technology progress. Empirical research of international scholars also proved that the infrastructure plays an important role in trade and economic growth. Therefore, this paper attempts to study the relationship between infrastructure and dynamic comparative advantage of service trade, based on a broad infrastructure perspective, which will have important significance in improving the comparative advantage of service trade in developing countries.Theoretically, this paper first defined the infrastructure from the broad perspective, and then learned from the H.Oniki and H.Uzawa’s analysis framework and Learner’s "factor endowment triangle" to study the relationship among infrastructure, the factor accumulation and dynamic comparative advantage of service trade. This paper tried to amend the traditional three factors of production and analyzed in detail how the various infrastructure corresponding to different accumulation of production factors so as to affect the dynamic change of the comparative advantages of service trade.Empirically, this paper firstly analyzed the status of comparative advantage in service trade in developing countries, and then studied the correlation between Chinese infrastructure investment and the dynamic comparative advantage of service trade. This paper mainly used panel data of developing countries during1995to2012to do econometric regression analysis, and tried to compare with the regression of developed countries. The results show that the infrastructure investment in developing countries has great effect on the dynamic transformation of service trade comparative advantage. Among them, the productive infrastructure in developing countries have greater effect on the total service export than the service trade structure, the effect on the service trade amount and structure of non-productive infrastructure in developing countries needs to ascend, and institutional infrastructure in developing countries have significant effect on the amount of service trade exports, but the promotion of trade structure needs to ascend. Compared with developed countries, we have the conclusion that the productive infrastructure and institutional infrastructure in developing countries have more significant effect on the promotion of service trade comparative advantage than developed countries, but non-productive infrastructure have less impact on service trade comparative advantage than developed countries.Finally, this paper put forward some corresponding policy recommendations, according to the present situation of the dynamic comparative advantage of service trade in developing countries and the empirical results.