Research on the Dynamic Change of Comparative Advantage of China's Service Trade

The service trade develops quickly in China and the scale of which is increased. The main body of China's service trade is transportation and travel. Meanwhile, the deficit in China's balance of service trade is widened and China' service trade lags behind the China's goods trade and the service trade in some country. It's important to assess the dynamic change of the comparative advantage of China's service trade for improving the competitive of China's service trade. The TC index and RCA index are used to evaluate the dynamic change of the comparative advantage of China's service trade. The conclusions are drawn that China's service trade in whole has comparative disadvantage, the comparative advantage of transportation is biggest in all service sectors, the comparative advantages in new services sectors such as financial service and insurance service are smaller than other service sector, the comparative advantages in transportation and travel are decreasing. Some measures should be taken to enhance the comparative advantages of China's service trade, which consist of perfecting the rules and laws of China's service trade, promoting science and technology innovation, opening more China's service sectors.