Empirical Analysis on International Competitiveness of China's Service Trade on the Basis of Diamond Model

Based on the Michael Porter Diamond Model, This article conducts empirical researches on factors influencing the international competitiveness of China in service trade. First, according to the data of 1985-2013, it selects foreign direct investment (FDI), GDP per capita, service trade market openness, service trade development level and goods trade development level for empirical tests. Then it analyzes long term and short term factors influencing the international competitiveness of China in service trade through Cointegration Test and Error Correction Model. The results show that FDI, GDP per capita, service trade openness and exports of goods trade all have a significant positive impact on the China's service trade in export. Finally, it proposes policy-related suggestions to promote the development of service trade.