Abstract This paper studies the influence of heterogeneous human capital on the competitiveness of China’s service trade with the help of the Lucas mechanism of action by building a new ’diamond’ model with State Space Model and GMM from 1985 to 2010 time series data. The results show that the level of the country’s human capital stays in a low condition. Human capital in service trade,FDI and the GDP per person are factors,and human capital is the key point in the competitiveness of services trade. The higher the level of the human capital,the smaller the effect it has on the service trade of our country. Creating a favorable external environment and developing the accumulation of high-level human capital or the competitive advantage of modern trade in services is a top priority.
LI Bin,LIU Hui-Gong,BANG Xing. The Effect of Idiosyncratic Human Capital on the Competitiveness of China Service Trade——Empirical Analysis based on the “Diamond” Model. Economic Survey, 2013, 1(6): 0100.
2013, Vol. 1 
