A Study On Competitiveness Comparison And Cooperative Of Service Trade Between China Mainland And Taiwan Under The Background Of Liberalization Of Service Trade

With the deepening of service economy, service trade has become an important force to promote economic growth for countries(regions), and service trade cooperation has become the focus of regional cooperation. Although international service trade liberalization stalled under the frame of GATS, but regional service trade liberalization process has been accelerated under the frame of the RTA. In this context, how to arrange the cooperation way of economic and trade between China Mainland and Taiwan, to construct new path to enhance the competitiveness of cross-strait trade in service, become common issues to China Mainland and Taiwan.Since China’s Mainland and Taiwan joining the WTO, the scale of service trade present a rapid growth trend, and service trade cooperation has become more and more close. As the "Cross Strait Agreement On services trade " signed in 2013 June, cross-strait cooperation in service trade enter into a new stage. This paper based on the Regional economical theory, comparative advantage theory and competitive advantage theory, founded on the present status of cross-strait service trade, construct international market share index(MS), the service trade competitiveness index(TC) and revealed comparative advantage index(RCA) to measure the cross-strait international competitiveness of service trade, and to evaluate the development of cross-strait service trade compared with developed economy in international perspective; Secondly, this paper empirical analysis the effect of various factors on the competitiveness of the cross-strait service trade by "Diamond Model". Finally, the paper discusses the status quo and advantages and existing problems of the cross-strait cooperation in services trade, and analyzes the economic effect brought about by ECFA and the "Cross Strait Agreement On services trade " signed. On the basis, this paper study the policies to promote cross-strait economic integration and cooperation in services trade.This paper draws the following conclusions:(1) Both China’s Mainland and Taiwan service trade scale develop rapidly, and Taiwan reversed the services trade defici t, but Mainland services trade deficit is still serious. Moreover, their service trade structure are very low as the traditional services trade is the main body.(2) Competitiveness index show that the developed countries in the international service trade occupy a dominant position, and Taiwan’s international competitiveness of services trade in medium level, Mainland’s competitiveness level of the service trade is weak; The effect of the factors in "Diamond Model" on promoting service trade of Mainland and Taiwan is not identical.(3) Taiwan’s service trade liberalization level higher than Mainland. In recent years, the process of cross-strait cooperation of services trade has accelerated, but the liberalization of services trade is insufficiency and asymmetry.(4) the ECFA and the "Cross Strait Agreement On services trade " bring huge economic benefits and opportunities for Taiwan. Mainland and Taiwan should further promote the construction of economic integration and innovation service trade cooperation mode, promote the international competitiveness in cross-strait services trade.