The Impact Of China’s Producer Service Trade Upon Upgrading Of Industrial Structure

In an open economy, international trade is playing more and more important role in promoting economic development of a country. The policy of Reform and Open up has gone through three and a half decade^, China’s trade in services has undergone significant changes whether in trade volume or in its structure. With the rapid development of today’s science and technology, international labor division and industrial structure is also undergoing profound changes. The tertiary industry and international trade in services have sprung up everywhere, however, the traditional labor-intensive trade in services has decline relatively and high value-added trade in services has increased steadily, thus becoming a new growth point of the new trade. The characteristic of producer services trade is of intermediate inputs and industrial relevance which determine its will play a pivotal role in the process of industrial restructuring.In today’s economic globalization, China’s economy must accelerate the transformation of economic development and make adjustment of the layout of the three industries in order to achieve comprehensive and sustainable development. The upgrading of China’s industrial structure requires producer services characterized in knowledge, technology and labor-intensive which is necessary to obtain the advantages of foreign trade in services through productive resources.It is necessary to explore the relationship between producer services trade and China’s industrial structure based on the above issues. Does producer services trade has a significant impact on upgrading of industrial structure? If it does, by what means and what extent?With qualitative research methods, this article first give a brief introduction of the definition and the classical theory of the producer services trade and the industrial structure. Then, give a summary of the paths of how producer services trade influence the industrial structure. By giving the detail description of development status of both producer service trade and industrial structure of China, we use mediation effect methods to test whether the influence is go through the technological progress, the human capital and the physical capital.Finally, combining with the test results and the actual economic situation, we put forward some recommendations based on the conclusions of this study.