Analysis Of The Competitive Advantages Of Trade In Services Of The BRICS

With the rapid development of international trade in today’s society, trade in services has become one of the fastest growing sectors of the world’s economy. The level of international competitiveness of trade in services has become an important factor affecting the international competitiveness of a country or region. " BRICS" (Brazil, Russia, India, China, South Africa) as the world’s developing compelling countries, is representative of the emerging economies. By comparing the empirical research on the competitiveness of trade in services of the " BRICS", this paper explores the competitive advantages sectors affecting trade in services of the five countries and the main factors of the competitiveness and find out something useful for the development of China’s trade in service to learn from, and thus put forward counter measures and suggestions to promote the development of China’s trade in services.Consequently, the paper is based on the related data of BRICS’import and export trade in services from 2003 to 2012. The main comparative study is performed using RCA index and TC index objectively for the competitiveness of the five countries’trade in services. The results showed that:the MSI and RCA index of five countries is uptrend overall, the fluctuation of TC index is relatively large, the competitiveness of the five countries’trade in services is ever-increasing; China’s MSI index is the highest, India’s TC and RCA index is the highest, which shows market share of China’s trade in services is higher than India’s, but India is far less potential for development; South Africa’s TC and RCA index is after India,the prospects for the development of South Africa’s trade in services described well; trends of Brazil and Russia were relatively stable. Then using these three Indices to compare the competitiveness of the five countries’various sectors of trade in services, it found that:the computer and information services of India is the most competitive sector of the five countries; compared to other sectors, China has advantages in the construction services sector; Brazil has an advantage in the financial sector; transport and communication services sector in Russia has an advantage; South Africa has a more competitive travel and insurance services; the patents and licenses, personal, cultural and recreational sectors of five countries don’t have competitive advantages. Factors affecting the competitiveness of BRICS’ trade in services varies. The most important factors on the competitiveness of BRICS’ trade in services are GDP and EXM.