A Study On The Economic Effect Of Trade Liberalization Of Cross - Strait Trade Under The ECFA Framework

On the basis of Economic Cooperation Framework Agreement (ECFA), China and Taiwan signed the "Cross-Strait Service Trade Agreement" aimed to promote the liberalization and facilitation of cross-strait service trade. The liberalization of trade in services is a new era of cross-strait economic development and will promote the trade development in a very great degree. In recent years, Mainland China and Taiwan both had a rapid development in service trade. In 2013, the service trade volume of Mainland China has been up to $539640000000 and at the same time,$94000000000 of Taiwan. That is to say, Mainland China and Taiwan both have a high speed of service trade developing. In addition, the bilateral service trade is developing rapidly and the volume of service trade has reached a new height after Mainland China and Taiwan signed up ECFA and "Cross-Strait Service Trade Agreement". In this context, many scholars began to focus on problems of cross-strait service trade liberalization, but most of the research is qualitative research than empirical research. Therefore, doing empirical research, which consists of economy, trade and industry effect of cross-strait service trade liberalization has the important theory significance as well as the practical significance.The first part is an introduction part, which mainly introduces the research background and significance, research methods, innovation points, references and so on. The aim of this part is to lay a theory foundation for the following 5 chapters. The first chapter mainly introduces the service trade theories such as theory of comparative advantage, scale economy theory, national competitive advantage theory and geo economic theory and it lays a theoretical foundation for the research of cross-strait service trade liberalization. The second chapter mainly introduces the development status of cross-strait trade in services from the total amount, the internal structure and the international competitiveness. At the same time, this chapter analyzes the service trade cooperation levels and areas between China and Taiwan. The third mainly analyzes the role of ECFA and "Cross-Strait Service Trade Agreement" in promoting the development of cross-strait liberalization of service trade. This part mainly aims to be the theoretical groundwork for the analysis of the forth chapter. As the key and the core, the forth chapter mainly selected the global trade analysis model GTAP to analyze the economic effect on both sides of the liberalization of trade in services. Through the empirical analysis, we have the conclusion that cross-strait service trade liberalization does really have different economic effect on China and Taiwan, as well as the trade and economy related countries. The fifth chapter puts forward some countermeasures and suggestions on how to develop better of the liberalization of cross-strait trade in services, which includes benefit balance on both China and Taiwan, paying attention to the behavior of related country, the mode innovation of service trade growth and the improvement of regulations and policies on service system. At the end of this paper, we draw the conclusion that the cross-strait service trade liberalization will improve the growth rate and level of real GDP both in China and Taiwan, and will also promote the development of related industries. In the end, put forward some problems to be further studied.