The Empirical Analysis Of Producer Services To China’s Service Trade Competitiveness

The international service trade accounts for a rising proportion of theworld trade and its development speed is also faster and faster day by day.The development of international service trade has become the focus of theworld competition. Because of the unbalanced development of the services inthe world that developed countries plays a dominant role in the service trade.As the largest component and also the most rapid growth part of developedcountry’s services, producer services has become the highlight of the theworld economy growth and promotes the improvement of national economicefficiency as the leading force. Our services development is relatively slow,and the producer services which embody the essence of modern services,with its small size compare to developed countries, needs to optimize itsstructure urgently. China’s service trade development is rapid, the worldmarket share is also in the front row, but present deficit in successive years,and the service trade competitiveness is relatively low. This researchemphases the effect of the producer services, as the industrial base, to theservice trade competitiveness.This paper first reviews the producer services and service tradecompetitiveness and their combining researches to induce the researchemphases and research methods of the existing literatures. Expound theapplication of merchandise trade theory in the service field and explanation ofthe competitive advantage theory to service trade. Analyze the effects ofservices to the trade in services from services output value, structure, FDI,technology, human capital, market structure and related industries. Based onthe connotation of producer services, this paper determines the extension ofproducer services in our country with the input-output ratio relations amongindustries. Through the output value and employment of producer servicesreveal producer service development tendency and the existing problems inChina now, and analyzes the import and export structures of producer servicetrade. Study the effects of producer services to China’s service trade competitiveness by an empirical analysis with "diamond model" as thetheoretical basis. Give a further analysis of output value and employment ofproducer services to trade imports and exports of short and long terminfluence by establishing VEC model. And finally propose suggestions fordeveloping producer services to upgrade our service trade competitivenessfrom six aspects.Through the theoretical analysis and empirical research, the mainconclusions are obtained as follows: Although our producer servicesdeveloped fast, overall level is still low and internal structure is unreasonable,and far away with standards of service-oriented society. China’s service tradeas a whole is big but without competitiveness. It shows not only small scalesbut also competitive disadvantage in technology and human capital intensiveindustries. At present, the development level of producer services hasmarkedly improved service trade, but the unreasonable employment structurehindered the promotion of service trade competitiveness. In the long run,improvement of employment structure and increasing output of producerservice will play a positive role in promoting service trade. And finally proposesuggestions for developing producer services to upgrade our service tradecompetitiveness.