Research On The Impact Of Service Trade Liberalization To The Scale Manufacturing Exports

Since the implementation of reform and opening up in1978, serviceindustry is gradually germination and expansion in developed citiesand has become an important component of social economy in ourcountry. Especially since China joined the WTO, the total import andexport trade in services increased year after year. With theaccelerated process of trade liberalization, China is graduallyentering into the world economic and trading system and forwardinga veritable trading power. Although China’s service trade hasachieved rapid development, but it has a certain gap with the UnitedStates and other developed countries. The trade structure in ourcountry is irrational, especially production services has lesscompetitive such as knowledge and technology intensive exclusiveright to use and licensing, finance, consulting, computer andinformation. At the same time, manufacturing which is closelyrelated to the productive service trade is the low level of technologyand processing capacity, and is always in the low-end chain links, resulting in China’s manufacturing products with low technologicalcontent and low added value as the main features. Simultaneously,many developed countries export large number of production ofservices, and its foreign direct investment of producer servicescontinue to expand which is bound to impact the development ofChina’s manufacturing industry and structural. Therefore, this studyhas important significance.We select productive service trade and manufactured goodsexports as the research object of this paper and analyze the affect ofproductive service trade import to manufactured goods exports fromthe perspective of theoretical and empirical. This paper discussesthe research status. On the basis of the research status, we analyzeChina’s trade in services productive and development status ofmanufactured goods. Then, the paper studied the influenceMechanism of productive service trade on China’s exports ofmanufactured goods from a theoretical point. The influenceMechanisms are the division of labor and specialization mechanism,producer services FDI impact mechanism, cross-border trade inservices production impact mechanisms, institutional mechanismsand economies of scale effect mechanisms. Through theestablishment of multiple linear regression equation, we study theaffect of services to manufactured exports from an empirical point. The results show that producer services and manufactured goodstrade developed rapidly, and exports and imports grew rapidlyespecially after China join to WTO. But there are some problems inour country’s service trade. China’s service industry started late, andslow development in the early years, this lead to the development ofChina’s service industry level is lower than Western countries, whichis mainly manifested in some services deficit and growing all yearssuch as the transport, insurance, finance, proprietary rights royaltiesand license fees act. However the communications, computer andinformation services, consulting and advertising develop rapidly fromdeficit to surplus. The exports of manufactured goods are increasingyear by year, of which the largest and fastest growth rate ismachinery and transport equipment. And industrial products exporttrends gradually by labor-intensive transition to capital-andtechnology-intensive. An Empirical Analysis of the results showedthat producer services exports have significant positive impact onChinese manufactured goods. And it has a positive impact oncapital-intensive manufacturing and labor-intensive manufacturing.But the impact of manufacturing labor costs is largest, indicatingthat the level of producer services and technical level remains to beimproved. Based on these findings, we propose some policy recommendations to accelerate the development of producerservices and its trade.