Analysis of the Influential Factors of International Service Trade in China—Based on the Trade Gravity Model

Abstract

Recently, the International Service Trade (IST) plays an increasingly vital role in the world economy. It is of great work to analyze the influential factors of IST, and to find out scientific and proper solutions to the problems in this field. This study is aimed at testifying the feasibility of applying the Trade Gravity Model (TGM) in analyzing the influential factors of IST, which suggests the amount of bilateral IST is negatively related to the distances and positively related to their GDPs; with increasing similarities in economic size of the two countries, trade in services increases; Besides, with development of their service industry of partners, the total amount of export and import in services increases. However, although the service industry in China indicates an increasingly upward trend, there is no positive relationship with the export of our service industry. Therefore, this article recommends laying emphasis on the rapid development of service industry, in order to balance the relationship between service industry and manufacture industry, promote the technology, capital, and knowledge oriented service.