Research on China and the US Service Trade Structures Based on Technical Value Added

Abstract

China and the United States have been important partners in service trade. Much research has been done on the traditional indexes which reflect the two countries’ service trade structure, indicating that technology is playing an increasingly significant role in international trade. We use a new index of technical value added to analyze the service trade structure of the two countries. As a result, we can calculate tradable technical value added based on the Technical Value Added theory. We also introduce the method to calculate and measure the service trade’s category according to the classification of the International Trade Center in China and the US. Finally we figure out the structures of the service trade in both countries as well as some proposals to optimize the structure.

Share and Cite:

Liu, X. and Shen, X. (2014) Research on China and the US Service Trade Structures Based on Technical Value Added. Open Journal of Social Sciences, 2, 97-102. doi: 10.4236/jss.2014.29017.

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1] Baldwin, R.E. (1971) Determinants of the Commodity Structure of U.S. Trade. American Economic Review, 61, 126- 146.
[2] Grossman, G.M. and Helpman, E. (1995) Technology and Trade. In: Grossman, G.M. and Rogoff, Eds., Handbook of International Economics,Vol. 3, North Holland, Amsterdam.
[3] Davis, Weinstein, Bradford and Shimpo, (1997) Using International and Japanese Regional Data t Determine when the Factor Abundance Theory of Trade Works. American Economic Review, 87, 421-446.
[4] Guan, Z.X. (2006) Analyzing the Foreign Trade Structure Based in Technologies of Trade Goods. International Economic Review No. 4-5.
[5] Lall, S. (2000) The Technological Structure and Performance of Developing Country Manufactured Exports1985-1988. QEH Working Paper Series-WEHWPS44, June 2000.
[6] Hausmann, R., Hwang, H. and Rodrik, D. (2007) What You Export Matters? Economic Growth, 12, 1-25.
[7] Lall, S. and Albaladejo, M. (2004) China’s Competitive Performance: A Threat to East Asian Manufactured Exports? World Development, 32, 1441-1446. http://dx.doi.org/10.1016/j.worlddev.2004.03.006

Copyright © 2024 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.