Impact Of Global Value Chain Embeddedness On Export Of Service In China

In the context of the continuous adjustment of the world economic structure,the getting complexity of international fragmentation of production and the development of intermediate trade accounting,service trade embedding in the global value chain can promote economic growth and has become a research hotspot.This paper uses the world input-output database to analyze the internal approach of the influences taken from global value chain after it embeds in the service sector in China.The empirical results show that with the expansion of the global value chain,the scale of service trade exports continues growing.Main differences between countries are as following.The greater the GDP per capita of a country,which represents the greater market size and product abundancy it embodies,the more significant promotion on service export amounts.Secondly,consistent with the classical theory,the improving of labor and capital factor endowments and the level of technological innovation can create comparative advantages for a country,thus promote the international competitiveness of its service products.Lastly,more human capital input also has a positive promotion effect on the international trade on service because it improves the technical complexity.Quantitatively examining the domestic value chain and the international value chain which make up the gross global value chain,and with country comparisons,we find that the expansion of international value chains contributes more to the growth of service export trade,and the relationship between domestic value chains and service trade is uncertain.Compared with developing countries,developed countries' international production display a larger proportion of gross value chain but the growth rate is relatively slow.Finally,for "small countries",due to the lack of domestic resources and special economic location,they rely more on international trade,the relative international production division is even more dominant.But for "big countries" like China,the practice of learning from "small countries" is unrealistic.More measures need to be done to improve the domestic production division system.On the other hand,China should strengthen the cooperation with the United States and other leading countries in the value chain as well.