Explorsion and Reaserch of china's competition of international service trade
ABSTRACT
Service trade is the area which develops most rapidly in international trade nowadays. Many countries do research about it and realize the contribution of service trade. In the future. trade in service would be an important area in international competition and corporation. With the end of the interim period of entering WTO in December 2006. trade in services of China is facing with big challenge. It is very necessary and significant to try our best to develop and study trade in services of China.
This paper use porter’s diamond model to analysis the competitiveness of China’s trade in service. And search for the reason why China’s trade in service has no competitiveness using empirical research and deeply analysis. Finally this paper gives some suggestions to increase China’s competitiveness of service trade. The main conclusions are as follows:
1. China’s trade in service has no competitive advantage as a whole.
2. According to empirical research. human capital. FDI and urbanization enhance competitiveness of trade in services greatly.
3. There are some deep reasons for low competitiveness of China’s trade in service.
4. For increasing China’s competitiveness of trade in services. 9 factors suggested should be done and work as a whole.
Key words: Service trade; Diamond model; Competitive advantage