Study on the Causes of Global Service Trade Growth in Terms of Income and Cost——An Empirical Analysis of Decomposition Equation of Trade Contribution Index from 40 Economies
Study on the Causes of Global Service Trade Growth in Terms of Income and Cost——An Empirical Analysis of Decomposition Equation of Trade Contribution Index from 40 Economies
GONG Jing1, YIN Zhong-ming2,3
1.School of Tourism, Economics and Management, Chengdu University, Chengdu 610106, China; 2.School of Economics, North Minzu University, Yinchuan 750021, China; 3.School of International Business, Southwestern University of Finance and Economics, Chengdu 611130, China
Abstract Under the background of service economy and service globalization, this paper adopts the large sample data from the world’s input-output database (WIOD) and the decomposition equation of contribution index derived by Novy in 2008 to study the causes of service trade growth of 40 economies in the world between 1995 and 2011 in terms of income and cost. The results show that firstly, the income increase is the prime engine of service trade growth while the decrease in bilateral service trade cost is the second cause with multilateral service trade cost contributing in the meantime. Secondly, the causes of China’s service trade growth are the same as the conclusion from global samples, but the evolution trends of the three contributing causes are different. Specifically, the contribution of income increase shows a gradually decreasing trend while the contribution of descending bilateral service trade cost shows an increasing trend. In addition, the contribution of multilateral services trade cost decrease shows a slowly weakening trend.
GONG Jing,YIN Zhong-Meng. Study on the Causes of Global Service Trade Growth in Terms of Income and Cost——An Empirical Analysis of Decomposition Equation of Trade Contribution Index from 40 Economies. Economic Survey, 2018, 35(2): 056.
2018, Vol. 35 
