A Study On International Competitiveness And Influencing Factors Of Insurance Service Trade In China

With the development of economic globalization and the adjustment of international industrial structure,the emphasis of the world economic development has gradually been shifting from trade in goods to trade in service,which has increasingly become the major engine of national economic growth.Because of starting late,China's service industry is in an inferior position from the aspects of trade structures,talent cultivation and legal system,which results in a huge service trade deficit.As it is known to all,the insurance industry,a vital safeguard of our country economy,is one of the priority areas for industrial structure optimization.And it is the earliest opened department in financial field with three basic functions: risk management,economic compensation and social management.However,China's insurance service trade has been suffering from a long-term deficit and its international competitiveness is not strong.After reviewing the relevant literature home and abroad,there is still a shortage of systematic research on insurance service trade and its influencing factors.Instead,most of the scholars just focused on the whole service trade competitiveness,trade competitiveness of some traditional service industries,the regulations and liberalization of the insurance service trade and the descriptive analysis of China's insurance service trade development.Therefore,this paper will systematically analyze the development of China's insurance service trade competitiveness and its influencing factors,to figure out effective ways to narrow the deficit and enhance international competitiveness,which is meaning for promoting the development of China's whole economy and service trade.This paper firstly makes a detailed literature review.Secondly,it elaborates on the development and the status of China's insurance industry and insurance service trade.Thirdly,it analyzes China's insurance service trade competitiveness by using multi index such as IMS?TC and RCA from horizontal and vertical aspects.It comes out that the China's insurance service trade has been suffering from a long-term deficit and its international competitiveness is not strong regardless of a 20-year development.In addition,based on the Potter's diamond model,this paper explores some factors which influence China's insurance service trade competitiveness.Fourthly,using the China's market share as a dependent variable,it makes an empirical research on the factors influencing the China's insurance service trade competitiveness.It shows that the total assets of insurance industry,the software industry output,the exports of trade in goods and the foreign direct investment in the financial sectors play positive roles in insurance service trade competiveness growth,while the premium rate,the proportion of insurance capital invested in funds and the concentration ratio of insurance industry have adverse effects.Finally,due to the analysis above,this paper comes up with some effective suggestions to improve the China's insurance service trade competitiveness from two aspects of the government and enterprises.