Development of Service Trade and Its Impact on Economic Growth: Empirical Evidence from China

Proceedings of The 3rd International Conference on Advanced Research in Management, Economics and Accounting

Year: 2022

DOI: https://www.doi.org/10.33422/3rd.armeaconf.2022.09.105

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Development of Service Trade and Its Impact on Economic Growth: Empirical Evidence from China

Han Laingqiu

ABSTRACT: 

The service sector has made significant contributions to the global economy and is the most dynamic component of international trade. Trade in services is becoming more significant in economic growth in an age dominated by the service sector. An assessment system is being built to analyse the development of China’s trade in services based on sixteen trade in services indicators. The Gray Relation Analysis (GRA) is used to assess the relationship between the development of China’s trade in services and economic growth. According to this analysis, China’s trade in services has been growing steadily between 2003 and 2018. Furthermore, there is a strong correlation between the development of services trade and various indicators of economic growth. Among these, trade in services has the strongest connection with total investment in fixed assets, showing that the contribution to economic development is primarily realised through drawing investment from the whole society. Policymakers and governments are urged to foster the growth of services trade and realise its economic potential.

keywords: trade in services, economic growth, entropy method, Gray Relation Analysis