Research On The Export Competitiveness Of Service Trade In Hunan Province

With the rapid development of the global services industry, trade service hasbecome an important engine of regional economic growth, and gradually becomes animportant criteria of a country’s or an area’s comprehensive strength. Since China hasjoined the WTO, the development of trade service of Hunan Province is facing abroader international market, which is certainly a good opportunity for development.However, due to various reasons, the development of service trade in Hunan provincestill confronts many problems. Only when solving these problems, we can improvethe international competitiveness of trade service in Hunan Province.This research includes the following parts:The first part describes the conceptsand theories related to trade service and its competitiveness;The second part analysesthe current situation of the development of trade service in Hunan as a whole and itsbranches’ development, and it also points out the development problems; The thirdpart analyses various factors that affect Hunan’s trade service with the use of Porter’sdiamond model; The fourth part establishes index system to evaluate thecompetitiveness of service trade with six indicators: international market share, exportcontribution rate, growth advantage index, trade competitiveness index, revealedcomparative advantage index, the dominant competitive advantage index, and alsoanalyses the factors which affect the competitiveness of service trade;The fifth partputs forward related countermeasures to enhance competitiveness of service tradeexport of Hunan Province.Through the empirical research on service trade competitiveness of HunanProvince, we concluded that: on the one hand, the exports of service trade of HunanProvince account for very little share of the international market; exports scale aresmall, which occupies a very little proportion of total exports in Hunan Province; theexport growth is not stable; trade service is only based on the imports; and thecompetitiveness of export is very weak. On the other hand, the rate of increase oftrade in goods exports,market openness of service trade and the level of developmentof service industry are positively correlated with the rate of increase of service tradeexports. The influence of market openness of trade service on service trade exports isobvious. However, due to the low level of employment structure of the tertiaryindustry in Hunan Province, human capital doesn’t play a full role in promoting thedevelopment of trade service.Together with the present situation of competitiveness of service trade of Hunan Province, the existing problems,and the conclusion of theempirical research, the paper points out that: in order to enhance the competitivenessof service trade exports of Hunan Province, we should not only continue to strengthenthe traditional industry development and keep the existing competitive advantage, butalso expand the province needs to improve the level of demand, strengthen theconstruction of goods trade, and promote the collaboration development of trade ofgoods and service trade. Our government should also increase the investment ofhuman capital, and exert government’s macro-control functions to cultivate talents forservice trade by creating a good economic and policy environment for thedevelopment of service trade.