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East Asian Regional Cooperation of Trade in Services

Author: WangLiHua
Tutor: LiuZhongLi
School: Nankai University
Course: International Trade
Keywords: East Asia FTA Cooperation of Trade in Services
CLC: F746.18
Type: PhD thesis
Year: 2012
Downloads: 72
Quote: 0
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In the1960s, with the continuous adjustment of the industrial structure, theservices sector is becoming the key component of the world economic structure. Atpresent, service industry could account for more than60percent of the global GDP,more than half of the global FDI flows to the service industry, in developed countries69%of total employment is in service industry. Adapt to the rapid development of theservices industry, the value of the trade in service is increasing too. The total exportvalue of the trade in services was$3.665trillion in2010, accounting for19.8%of thetotal merchandise and services trade, trade in services has become an important factoraffecting national economic. As the world’s most economically vibrant regions, thedevelopment of trade in services also play an indispensable role in East Asia. In2010,East Asia’s exports of services trade amounted to$794.6billion, accounting for22%of the global exports of services; imports of$767.6billion, accounting for20percentof global imports of services. So, the East Asia’s trade in services has an absolutedominant position in Asia. And there is an important significance to study thedevelopment of trade in services in East Asian.With the development of trade in services, liberalization of international trade inservices becomes the new issues in the field of international trade liberalization. Theissues of the liberalization of trade in services became the important problems in theUruguay Round and the Doha Round. However, due to the WTO multilateral tradingsystem requires consensus on the basis of negotiations of all the members, when thereare numbers of members and topics, this mechanism will not help the negotiationsproceed, but will play an inhibitory effect. In contrast, regional cooperation involvesless number of economies, and these economies have a closely level in the economicdevelopment, so they can reach consensus on the issues. Therefore, the countries areconsidering the implementation of FTA of the trade in services, to replace themultilateral system. Under the circumstances, East Asia is also active in the FTAcooperation, and achieved remarkable results, becoming the leader of the world’s newwave of the FTA. As one of the major economies of East Asia, China is in what position in the development of East Asian trade in services, if she should be involvedin services trade cooperation in East Asia, have become an important content ofChina’s foreign trade strategy. In this context, it becomes more important to study thedevelopment and the trade effects of the service trade cooperation in East Asia,Deardorff and other scholars studyed the traditional comparative advantagetheory, regarded that the theory of comparative advantage applies equally to trade inservices; Jones&Ruane have concluded that through the establishment of thetheoretical model, the liberalization of trade in services can promote trade in servicesand social welfare increase, but the government should determine the liberalizationmode of trade in services based on the comparative advantages of their own servicedepartments. According to the above theory, this paper uses competitive advantageevaluation index system to examine the level of competitiveness of trade in servicesin East Asian regional, combining with the international situation analysis the way ofservice trade cooperation in East Asia, thinks that in the current environment EastAsia can take advantage of FTA to conduct their services trade cooperation, and usingDID model to take an empirical test on trade effects of trade in services of the FTAcooperation in East Asia.Based on the above ideas and methods, this paper is divided into six chapters.The first chapter is the introduction to explain the writing background, research statusin home and abroad, research ideas, structural arrangements and major innovations.The second chapter summarizes the theory of comparative advantage of services tradeand service trade liberalization. This paper should study ways of cooperation andtrade effects of the East Asian trade in services on the base of these theories. The thirdchapter examines the reality basis of the service trade cooperation in East Asia,including the trade value, departmental structure, trade partner structure of the tradein services in East Asia; this chapter also uses industry competitiveness evaluationindex system to analyze the competitive situation of East Asian trade in services. Thefourth chapter analyzes the possible ways of cooperation of trade in services in EastAsian, thinks that in the current international environment, the FTA cooperation is animportant way for trade in services in East Asian. The fifth chapter using the bilateraltrade data of trade in services between East Asian region and its major trading partners from2000to2010has an empirical test to the cooperation effct of the FTAin services trade on the trade value from both direct and indirect effects, verify thatthe FTA cooperation can play a positive effect on the trade value in East Asian.Chapter VI is the summery of this paper, at the same time this chapter provides thepolicy recommendations for the cooperation of trade in services in East Asian, andprovides the policy recommendations for China’s participation in services tradecooperation in East Asia.Through the theoretical and empirical analysis, we draw the followingconclusions:First, trade in services in East Asia rapid development, the trade value isincreasing rapidly, and the international status of East Asia’s trade services is upgrading. Atthe same time, the development structure of the East Asian trade in services has beenoptimized. From the point of the departmental structure, the traditional transportsector proportion dropped significantly, the ratio of new information and patents isincreased; from the main structure of the economy, China had a rapid development intrade in services, so that her status in East Asia surpassed Japan, and she become thelargest economy of the East Asian trade in services; from the trading partner, theservices trade partner of East Asia is relative concentration, and there is a slighttendency of decentralized, regional trade in services plays an important role in EastAsian trade in services, and regional trade has become strong support of thecooperation of trade in service in East Asia.Second, through the analysis of the competitive advantage in the servicesindustries and its sub-sector in East Asia, we know that the developing level of thetrade in services between the various economies of East Asia the level exists to acertain echelon distribution, but the economies have their own advantages sector, andshowed a staggered exist situation. The economies have different strengths sector intrade in services sector, so there is the possibility to cooperate among the economies.Third, with the development of trade in services, the services trade liberalizationwave is developing rapidly. At present, there are three means to the liberalization oftrade in service, including the multilateral trading system, the regional tradecooperation and bilateral free trade agreements and other means. To achieve the liberalization of services trade in East Asia, the economies mainly throughparticipation in the multilateral negotiations under the trade liberalization frameworkof WTO, participation in the APEC regional liberalization activities of trade inservices, or signing a free trade agreement between the East Asian economies. In thecurrent world environment, the progress of WTO multilateral negotiations and theAPEC regional cooperation is slow. In contrast, the progress of FTA cooperation inEast Asia is rapid and East Asia is in a leading position in the third FTA wave. SoFTA cooperation is an important way for the cooperation of trade in services in EastAsia.Fourth, we using the bilateral services trade data between East Asian region andmajor trading partners from2000to2010, have an empirical test to the cooperationeffct of the FTA in services trade on the trade value from both direct and indirecteffects. Test results show that the implementation of the FTA cooperation of trade inservices, there is a positive direct effects on both trade in services and trade in goodsin East Asian region, the indirect effects may be positive or negative, but has apositive effect at last, this confirmes that the FTA is a good way to promote thecooperation of service trade in East Asia.

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