The Comparative Study On Competitiveness Of Trade In Service Between South Korea And China

With the continuous development of the global economy,the pace of development of the service trade is becoming more and more quickly,the position of service industry in the national economy is rising constantly.In a sense,the level of progress in the service industry could become an indicator to assess country's development level.Therefore,researches in Service trade could have profound significance.South Korea and China is a representative of the emerging economies in Asia and an important trade country.Both countries won the rapid development.However,the trade in services between the two countries is in a state of continuous deficit,which has a negative impact on the balance of economic structure between the two countries.Moreover,the superior and inferior of the two countries industries are very prominent in the each service industry and it is in a state of imbalance.The thesis analyzes factors that hinder the further development of the bilateral in trade services through the contrast between South Korea and China service trade's development status,characteristics of service trade and export and import in the service trade and puts forward corresponding suggestions to improve the environment of trade services between the two countries.This thesis was organized in six chapters.The first chapter is an introduction and mainly focused on the research background,significance,literature review,the thesis'innovation and shortcomings.The second chapter introduced the definition of trade in services and related theories.It mainly introduced the definition,the classification of the trade in services and theories related to trade in services.The third chapter presents the development in service trade in both South Korea and China.It mainly represents that South Korea and China's development status and detailed introduction of two countries service trade.The fourth chapter presents the competitiveness comparison of South Korea and China's Trade in Services.At this juncture,attention is drifted to comparing the international competitiveness of South Korea and China's service trade through TC index,RCA index and CA index.The fifth chapter reported the comparative analysis of the strength and weakness of service trade in these two countries.The sixth chapter is the suggestion to develop the strength and weakness of service trade in these two countries;mainly construction services,transportation services,travel services and other business services in South Korea,telecommnications,computer and information services,transportation services,patent licensing services in China.Through the comparative analysis of South Korea and China's development status in the Service trade,it indicates that both countries have these similarities in the Service trade.First of all,South Korea and China's service trade scale have been increasing year by year.But compared with the goods trade,it indicates differently.The trade in goods between the two countries continues to trade surplus,but trade in services is in a deficit.Also,structural imbalances are prominent in the specific departments of the service trade in South Korea and China.Secondly,calculating the TC index,RCA index and CA index,construction services sector is proved the competitive advantage sector in the service trade between China and South Korea.In addition,South Korea's transportation services and other business services,telecommunications,computer and information services in China are in surplus.At the same time,South Korea and China have a common disadvantage in patents and licensing services and travel services' sector.South Korea's inferior sector also includes other business service and China's inferior sector is transportation service.After analysis,this paper indicates that the complementary relationship between South Korea and China trade is more prominent than the competition.There is a huge space for cooperation in the future development of service trade.To this end,this paper puts forward to promote the development of service trade between the two countries like talent development,technology updates,preferential policies,brand awareness.