Relationship between Dynamic Comparative Advantage of Services Trade and Economic Growth
|School||Zhejiang Technology and Business University|
|Keywords||services trade dynamic comparative advantage economic growth threshold effect|
With development of technological progress and social productive forces, the focus of the global industrial structure has changed from manufacturing towards services, and the services sector is becoming daily more important in national economies. Services trade has rapidly developed, and its average annual growth rate is more than goods trade. More and more countries emphasis on service development. World economy is going into "service times". The world trade structure has changed.The topic of the paper is relationship between services trade and economic growth. The first part of the article is about relevant literature and a brief review.The second component is related to theoretical analysis: services trade promotes economic growth in imports, exports and institutional innovation three angles. The main factors of comparative advantage are:domestic human capital, service development, institutional environment and foreign direct investment. The third part analysis the status quo of China’s service trade development, and select the RCA index and RTA index to study China’s overall and sub-sectors of comparative advantage of services trade. The fourth part uses multinational panel data to set fixed effects varying coefficient model, and gives a regression analysis. The purpose of doing this is study whether dynamic comparative advantage of services trade can translate into economic growth. Finally, we come to a conclusion, and propound some suggestions.This paper is not limited to qualitative analysis and static effects analysis, but more consideration to dynamic effects. We talk about technology diffusion, human capital accumulation effect and the effect of institutional innovations.I want to know if there is a "threshold" effect between services trade and the comparative advantage of economic growth. Using this method is not common in previous studies, but our results are closer to the empirical economic realities, which has some significance in enriching services trade theory.