Research On China’s Communication Service Trade Export Cost

With the rapid development of science technology and knowledge economy, the pace of our life is becoming faster and faster.Information has played a more significant role in modern society, so the related communication and information delivery service has been developed more quickly. Information and Communication technology has promoted the development of international communication service trade. Meanwhile, communication service trade has broadened the space and places of international trade; communication service trade has shortened the distance and time of international trade; communication service trade has simplified the procedures and processes of international trade. According to the development of international communication service trade, infrastructure construction and information society are the solid material and social foundation. The war fire in world communication service market has been lit. Information service globalization has been a current trend of global information service industry. However, the previous researches on communication service concentrate on international competency. There is no research on communication service cost and the effect of communication service cost on bilateral trade volume. Thus, this paper try to choose this new angle to illustrate communication service.The traditional international trade theory and model are on the basis of zero cost. But with the rapid development and innovation of international trade theory, trade cost has become the core concept of the new trade theory and new economic geography. This paper use Novy model to calculate the cost between china and its main trade partners. Meanwhile, it also calculates how trade cost contributes to bilateral trade growth, which greatly enriched the trade cost theory on the communication service trade cost theory. Communication service trade is an important part of service trade. Its own development not only broadens a wide prospect for world market, but also contribute to international trade, international finance and international transportation. So this paper calculates the trade cost between China and its main trade partners. This will helps to make polices, decrease the communication trade cost, contributes to the development of itself and trade market. It is of great practical significance and reference.The main parts are as follows:Firstly, this paper introduces the exordium, which concludes the research background and meaning, basic concepts and literature review, paper structure, innovation points and weakness. Basic concepts and literature part illustrates the concept about trade cost, service trade and communication service trade, then introduces the measurement about trade cost and current situation of communication service trade. The measurement consists direct and indirect method. Direct measurement usually gets transportation cost from transportation industry, then the trade cost can be displayed by tariff and non-tariff data. Or we can also calculate through CIF/FOB. However, there are some limitations in direct measurement, such the availability of trade data. Hence, indirect measurement is more preferred. Many experts use substitute variable to replace trade cost to analyze the relationship between trade cost and bilateral trade volume, but it’s easy to omit the explanatory variable. So this paper adopt Novy modified gravity model to measure time-varying communication service trade cost and the contribution rate of trade cost on the growth of trade volume.Secondly, this paper analyzes the status and existing problems of communication service. This paper introduces that the communication service displays a growing trend and the increasing rate fluctuate widely. There are also some existing problems,such as the big gap with developed countries, weak competency and high trade cost.Thirdly, his paper uses eleven main communication countries’ data to calculate bilateral cost from 1995 to 2011. The conclusion indicates that the bilateral cost between China and other eleven countries is in a decreasing trend, especially from the year China entering into WTO. According to the result, the general cost decreases fast, but the cost is relatively high. So we illustrate the factors which contribute to a high cost. Finally, this paper tests that different parameters lead to different results. High substitute elasticity leads to low trade cost; Low substitute elasticity leads to high trade cost. However, difference in parameters doesn’t have effect on the changing trend of trade cost.Fourthly, this paper researches on the contributing factors of communication service trade. It concludes that bilateral trade cost is a very important factor, apart from industry output. At the same time, this paper uses 2002 as the dividing crest and calculates the contribution rate about communication service trade cost on service trade volume. It indicates that the contribution rate of trade cost on trade volume is generally increasing.Fifthly, this capture contains two parts:factors and policies. On the one hand, it introduces the contributing factors to bilateral trade cost, which contains geography elements, linguistic element, economic element, money policy and regional economic cooperation. On the other hand, as the communication service trade can not only promote the development traditional service trade but also the whole service trade. So we should adopt measurement to decrease bilateral trade cost.Sixthly, this part concludes the main results and illustrates the future research objects.