| As the developing of service economy, competition in commodity trade has been changed into service trade which has been the dominant force to promote the economic efficiency and growth in total international production. China and India are both developing countries.In the process of economic globalization,they all have impressive economic development. There are some similarities between the two countries in natural resources, population, economic developing level, so they also have many similarities in the problems faced in economic development. However, due to the different development path of China and India, their focus on the industry is quite different. In recent years, the development of India’s service trade has a very rapid growth, particularly in the computer and information technology service. While though the quantity of China’s total import and export of trade service is huge, the composition of exports, technological innovation of China still have some distance to India. Therefore, the comparative analysis of international competitiveness between China and India has important practical significance.Based on the literature of service trade, this paper firstly focuses the applicability of the traditional trade theory. Then based on data from2000to2013, this paper analyses the service trade of China and India from three aspects in recent status, competitiveness index, growth motivation. It is found that China has a larger amount of export and import trade in service than India, though it has a big service trade deficit and its export structure is not rational. Calculating MS, RCA,and TSC to compare the competitiveness of service trade in China and India, it is found that the service trade of India is more competitive. Then we use Constant Market Share Analysis to find the export growth motivation for the two countries. Finally, this paper gives some policy recommendations on how to improve the international competitiveness of China’s service trade. |
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