The Impact Of Trade Openness On The Growth Of China's Service Industry

With the deepening of economic globalization,the status of services in a country's economic development and the employment structure is increasingly important.So as the trade liberalization has become the main development trend in the world economy,the interconnection between the national economics is becoming more and more close,and the opening of service industry to the outside world also become a sensitive issue in the process of economic globalization.Since China joins The WTO organization,our country is increasingly integrated into the global economic structure,and the level of opening to the outside word continues to rise.The volume of import and export of services is increasing year by year.For example,the volume of import is increasing from $36.031 billion in 2000 to $382.914 billion in 2014,and the volume of export is increasing from $30.430 billion in 2000 to$210.589 billion in 2014.the average annual growth rate of both imports and exports are going far more than China's GDP growth rate,so we believe service will keep growing.In 2013.the third industry accounted for 46.7%of gross domestic product,more than the proportion of secondary industry for the first time.In 2015,the proportion is 50.2%,higher than secondary industry by 9.3 percentage point.Since the adoption of reform and opening-up policy,the service industry of our country has gained great-leap-forward development,however,compared with the developed countries,we are still lag behind.In the background of the development of knowledge economics and the globalization of service industry,we are faced with unprecedented challenges,but also full of opportunities.How can China's service industry better go to the world and how can we fully exploit the opportunities for trade liberalization?It all become an important subject of the development of China's service industry.Therefore,it is of great strategic significance to carry out in-depth study on China's service industry and explore the key factors and mechanism of its production scale and production efficiency under the background of trade liberalization,so as to guide the future development strategy of China's service industry.This paper summarizes the relevant literature and research results on the relationship between the growth of the service industry and the development of economic,the impact of international trade on the service industry development.Based on the review this paper find some deficiency and blank in the past research,which is the foundation for the research direction of this paper.In this paper,based on experience and empirical data this paper expounds the characteristics and status quo of China's service industry development,and also exposes the disadvantage of China's service industry and its reasons.Based on the analysis of the mechanism of the impact of trade liberalization on the growth of the service industry,this paper conducts an empirical study about the effect and mechanism of openness,export trade and import trade openness on service industry development in our country by China's 1995-2014 panel data of 31 provinces and cities.In addition,this paper uses the fixed effect model to study the effect of trade liberalization on the growth of value-added services.This paper also uses the quantile regression method to study the influences of trade liberalization on total factor productivity of service industry.This paper regression results show that,firstly,the trade liberalization,which is measured by import trade or export trade or trade FDI,has a positive effect on the output of China's service industry.The opening of import and export trade has promoted the production efficiency of China's service industry.Industrial FDI is currently playing an inhibitory effect on the efficiency of China's service industry.Secondly,in the process of research,it also finds that human capital has an inhibitory effect on the growth of China's service industry,and has a positive effect on the total factor productivity of China's service industry.The level of economic development can promote China's service industry in export trade Growth,while the employment and urbanization level is to curb the growth of China's service industry.Finally,this paper summarizes the results of empirical research and puts forward corresponding policy suggestions.