Influence Of Factor Accumulation On Dynamic Comparative Advantage Of Service Trade

Reform and Opening-up has been nearly 40 years,China's service trade has also achieved a leap-forward development.On the one hand,the "quantity" of trade in services is increasing,and on the other hand,the "quality" of trade in services is worrisome.In general,the development of China's service trade at the national and regional levels of service trade structure is unreasonable,in the high value-added services trade there are more disadvantaged issues.In addition,the development of trade in services at the level of China's provinces and municipalities is not balanced,and is directly linked with the level of economic development.What's more,the overall situation is relatively developed in the eastern region,among which Beijing and Shanghai are far ahead and other provinces and cities is slowly catching up.The existing research on the dynamic comparative advantage of service trade focuses mainly on external influences and rarely on internal influences in the perspective of factors.Besides,they are mainly on the overall research at the national level,which has limited significance for the development of local service trade.Based on this,this paper combined with the policy proposed by Ministry of Commerce in 2017,which is "service trade development" thirteen five "plan",selected the Beijing,Shanghai,Zhejiang,Jiangsu and Fujian to form five provinces panel model to analyse the influence of factor accumulation on the dynamic comparative advantage of service trade both theoretically and empirically.The main conclusions of the article include.Firstly,the five provinces penal covers the core area,gathering area and radiation area of service trade.The total amount of import and export of trade in services increased year by year but the structural problems were obvious.Secondly,from the theoretical research on the dynamic comparative advantage of the factors influencing the service trade,the mechanism of factor accumulation on the dynamic change of the comparative advantage of service trade mainly includes three paths,which are factor flow,factor accumulation and factor culture.This paper analyzes the factors that influence the dynamic comparative advantage of service trade,which are Labor(rSERVE),material capital(rCP),human capital(HC),technological development level(rRD)and actual use of foreign direct investment(rFDI).The results turn out to be significantly related to the comparative advantage of trade in services.Among them,the impact of human capital(HC)on the dynamic comparative advantage of service trade is negative,although it is inconsistent with the hypothesis,but also reflects the immaturity of the development of China's provincial and municipal levels of service trade and the unreasonable allocation of resources,and reflects the return period of human capital elements is long and slow.In other explanatory variables,labor as the basic factors is negative,which reveals that the labor force of five provinces and municipalities are unskilled and mostly engaged in low-end services.What's more,material capital,technology and the actual use of foreign direct investment are positive to dynamic comparative advantage of trade in services.Although the impact of the coefficient is not large but the growth of space is huge.The factor endowment is the basis of the dynamic comparative advantage of the service trade.The optimization of the service trade structure and the promotion of the international competitiveness are the manifestations of the dynamic upgrading of the comparative advantage of the service trade.Based on the above conclusions,in order to promote the development of China's regional trade in services at the regional level,this paper makes the following recommendations:From the point of view of factor investment,in view of the fact that the accumulation of advanced factors has a significant effect on the dynamic comparative advantage of service trade,provinces and cities should increase their investment in material capital,human capital and technology,and promote the accumulation of advanced elements.At present,the improvement of the comparative advantage of provincial and municipal level service trade mainly depends on material capital and technology.The government should strengthen the corresponding infrastructure construction and actively develop or introduce advanced technology.Although the investment of human capital may hinder the development of the comparative advantage of service trade in the short term,its long-term development of service trade cannot be neglected.Specifically,the investment on material capital level should expand,especially infrastructure investment.For technology,provinces and cities should vigorously develop scientific research,increase the proportion of investment in scientific research projects,pay more attention to the technical innovation of trade in services,and appropriately introduce western advanced technology,thereby enhancing the level of technological development at the regional level.In addition,all levels of government should expand the degree of trade in services,and actively introduce foreign direct investment and increase investment in services,especially the modern service sector,the proportion of FDI investment,such as finance,insurance,consulting,patents and so on.At the level of human capital,provinces and municipalities should also strengthen the investment,management and allocation of human capital on the basis of improving material capital and technology,such as expanding education and training investment,cultivating and introducing high-level and high-quality high-end service talents,optimizing service industry manpower configuration.All in all,for developing countries such as China,the development of trade in services should proceed from the regional level,and gradually push forward,focusing on external factors such as open investment,import trade etc.and should be based on the internal resources elements of the combination and coordination.All levels of government should work together to promote the trade in services,focusing on the cultivation of advanced elements,through the accumulation of factors to dynamically enhance the comparative advantage of trade in services to achieve service trade from low to high level of transformation and promote the sustainable growth of trade in services.