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Using the Gravity Model to Estimate Potential and Barriers of China Trade in Service

Author: LiuZhengKai
Tutor: ZhangBin
School: Donghua University
Course: World economy
Keywords: Gravity Model Trade in Services Potential Trade barriers
CLC: F224
Type: Master's thesis
Year: 2012
Downloads: 72
Quote: 0
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Abstract


The service industry is to occupy the largest proportion of the department in the global economy, so about two-thirds of the world's GDP; comes from the service sector in industrialized countries, more than half of the employment. Is a national service products has production capacity into tradable \fewer resources to achieve greater wealth of trade routes. However, the proportion of international trade in services trade has lagged far behind, accounting for only about 20% of global trade flows. Subject to data and easy, the start of the study of domestic and international trade in services is far behind the trade in goods. But also to some extent on the service trade to start the management plus easy to learn from the gravitational equations for trade in goods has long shipped factory is an example. Abroad using the gravity model of trade in services began in 2002, the domestic research rather late start to the 2009 scholars dedicated to such research. From the use of data and empirical model, existing research has the potential to further expand. Identification with estimates based on the gravity model determinants and barriers to trade in services, and on this basis to estimate the export potential of trade in services and non-tariff barriers \In this paper, the empirical part, the use of the basic gravity model and expand the gravity model and measured four. The results show: the the trade bilateral economic scale, the level of economic development, the physical distance and the Free Trade Area of ??the total service trade volume and the volume of trade between the sub-sector showed significant tariff equivalents of barriers to the level of major trading partners; China for nearly a decade in decline, but should also further reduce barriers to trade in services and exports and imports of services as soon as possible to establish effective promotion system. The paper is divided into six chapters. First of all, the purpose and significance of the elaborate dissertation topic, literature review and evaluation, the contents of the framework, research methods, innovation Subsequently, the concept of trade in services and categories described, the focus is to pave the way for the study of this article both directions First, a preliminary discussion of a number of factors that affect trade in services, and the second is the analysis of the existence of barriers to trade in services and metrics on the status of China's service trade system overview and comparative analysis service trade import and export contrast, the second inter-country comparison, China's trade in goods and trade in services compared. Fourth, to build the first model and gives the results, then as a foothold in China's service trade export potential and import potential, and how to expand the depth of China's service trade advantage and avoid vulnerable. Fifth, build a second model and results are given, and then combined with the situation of our country and our major trading partners, to discuss tariff equivalents of services trade barriers trend, China's service trade barriers still falling space. Conclusions about later made full preparations for the analysis of the different countries (regions).

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