The Study Of The International Competitiveness Of China’s Service Trade

With the rapid growth of trade in services, trade in services has become "engine"to promote economic growth in both developed and developing countries The pattern of trade in services in the world, the developed countries take the absolute dominance.Since December2001China joined the WTO, China’s trade in services has made remarkable development, but development while also allows us to see the shortcomings and difficulties of China’s trade services.Compared with other countries in the world, there are still some gaps on the development of China’s trade in services,Therefore, we believe it is necessary for the competitiveness of China’s service trade to make a comprehensive analysis and evaluation to identify the influencing factors, explore effective ways to improve the competitiveness of China’s service trade, and to promote the sustainable development of China’s service trade and economic growth.In this paper, normative analysis method and empirical analysis method are used by combining.The status quo of China’s service trade competitiveness compare with India. Then,find out the factors affecting China’s service trade and do empirical research.Articles specific ideas as follows:Firstly, we defined the research background and significance of international competitiveness of China’s trade in services, review and summarize the previous studies, and find deficiencies in the existing literature on the international competitiveness of trade in services.Therefore, we propose to establish international competitiveness evaluation index system, using the method of evaluation in India compared to China’s service trade competitiveness.Secondly, based on the improved "diamond" model, theoretically analyze the factors affecting the international competitiveness of China’s service trade, and then apply the co-integration analysis method, and do empirical research on the factors affecting the competitiveness of China’s service trade.On the basis of a combination of qualitative and quantitative research, the paper concluded that:(1) Through the study of the status quo of China’s service trade and international competitiveness evaluation index system that:compared with India, China is the larger country of trade services, but not the power country of trade in services. China’s service trade volume has an absolute advantage. International competitiveness of traditional sectors are of comparative advantage.Competitiveness of high value-added new service trade is weak, but with rapid development, and shows some upward trend. (2) According to the improved "diamond model", we select eight factors affecting the international competitiveness of China’s service trade.Apply co-integration analysis, Granger causality test and error correction model analysis, we find there is a long-term stable relationship between the service trade exports and trade in goods exports, the services GDP, personal GDP, foreign direct investment and technology investment in service. Exports of goods trade, service sector and trade in services FDI is the reason for the change in exports. Technological innovation is the source of power for sustainable development of trade in services.Thus, this paper finally comes to some policy recommendations to enhance the competitiveness of China’s service trade.