Study On Financial Service Intra-industry Trade In China And Its Influential Factors

With the increasing of the integration of the world economy, the rules and pattern of the international trade and its content are changing rapidly. The services, especially the financial services, which follow the production and delivery of the goods, have achieved considerable development. At the same time, the deepening of economic globalization and the refinement of the international labor division promotes the development of intra-industry trade, which has become a important approach to build international competitiveness. Therefore, the study on the intra-industry trade of financial services in China has great practical significance in promoting service industry optimization; updating the industrial structure for a country or a region, improving the social welfare and building the service industry international competitiveness in China.Based on the literature review of foreign and domestic studies, this paper firstly analyses the generative mechanism, economic effect and influential factors of financial service intra-industry trade, and the analysis consists of three parts—status analysis, index measuring and panel data analysis. According to the statistics, there exists adverse trade balance and huge structural imbalance through the analysis of current situation of financial service trade in China. This paper uses the G-L index and S index to calculate the level of Chinese financial service intra-industry trade. With the G-L index, the result shows that the level is not high, specifically; the level of insurance service intra-industry trade is low but the level of other financial service intra-industry trade is high. With the S index, the result is the growth of the industry, whether insurance service or other financial service, belongs to the type of intra-industry trade. Based on the2000～2011data of financial service between Hong Kong, the U.S, Japan, Germany, Singapore, France, Russia and China, through the combination of static panel data analysis and dynamic panel data analysis and the review of the influential factors of intra-industry trade, this paper reveals that the human capital investment is the most important factor on the development of Chinese financial service intra-industry trade and the importance increases in the long term. Income per capital and FDI also has impact on it, but the effect of FDI takes time to promote the development of financial intra-industry trade in China. By contrast, the influence of the difference of market size, intensity of goods trade and trade imbalance, etc. is not obvious. And further based on the above theoretic and empirical analyses, this paper makes proposal from four aspects to develop the financial services intra-industry trade in China to improve financial service intra-industry trade and enhance the competitiveness of Chinese financial service industry.