The Study Of The Factors And Competitiveness Of Shanghai’s Service Trade

With the rapid growth of trade in services, trade in services has become "engine"to promote countries’economic growth. The level of competitiveness has gradually become the key indicators to impact a national or regional the international competitiveness. Shanghai, as one of China’s most economically developed cities, the level of competitiveness of trade in services related to the level of China’s service trade competitiveness. Therefore, this article is in this background, the Shanghai service trade competitiveness level and its influencing factors were studied.In this paper, normative analysis method and empirical analysis method are used by combining. The status quo of Shanghai’s service trade competitiveness compare with Hong Kong and Singapore. The, find out the factors affecting Shanghai’s service trade and do empirical research. Articles specific ideas as follows:Firstly, to clarify the related concepts and theoretical basis of competitiveness of service trade, including the core ideological and main points of traditional theory of comparative advantage and theory of competitive advantage. For the further study these two theories for international trade in services. Secondly, use the international market share, trade competitiveness index, revealed comparative advantage index, revealed competitiveness index and net exports revealed comparative advantage index to analyze the competitiveness of Shanghai’s services trade comparing with Hong Kong and Singapore. Third, based on the improved to technological innovation as the core of the "diamond model", theoretically analyze the factors affecting the competitiveness of Shanghai’s service trade, and then apply E-G co-integration analysis method, and do empirical research on the factors affecting the competitiveness of Shanghai’s service trade. On the basis of a combination of qualitative and quantitative research, the paper concluded that:(1) Through the study of the status quo of Shanghai’s service trade and international competitiveness evaluation index system that:compared with Hong Kong and Singapore, Shanghai’s service trade scale develop very quickly in recent years. But comparing to the major international cities, the competitiveness of Shanghai’s service trade are still some gaps. Shanghai need to accelerate the transformation of traditional services and the development of new services trade.(2) According to the improved "diamond model", we select six factors affecting the competitiveness of Shanghai’s service trade. Apply co-integration analysis, Granger causality test and error correction model analysis, we find that trade in goods exports, the level of service development, human capital and technology investment in service have a significant positive impact on the service trade exports in the long run. Thus, this paper finally comes to some policy recommendations to enhance the Competitiveness of Shanghai’s service trade.