Factors influence on the share of services in international trade: Focus on East Asia

초록

Purpose: This paper aims to analyze factors affecting the share of services in international trade focusing on geographical region of East Asia which includes China, Hong Kong, Macau and Taiwan; Mongolia, Korea and Japan. Services is known to be the most significant sector of the economy for decades, especially in the developed countries, and now the competitiveness of national economies is also increasingly recognized by their performance in the service sector of the eastern sub-region of the Asian continent. Particular emphasis is made on the opportunities which arise for Chinese business among the eastern countries due to its huge impact on the neighboring countries. Firstly, the liberalization and development of international trade in services for each country is studied. International trade in services is dominated by infrastructural services, therefore, secondly transportation, communication, finance, audiovisual, tourism, and insurance services are examined over the region. Then, this study can present a comprehensive assessment of international trade in services and an analysis of its prospects. Methodology: As a theoretical study, qualitative method is used based on the literature review in order to build a theoretical framework which can provide the boundaries for this study and its position within the context of services and perspective of international trade. Findings: Through the analysis, the share of services is determined to be sensitive to the multiple factors: technological development, liberalization of the processes, privatization and deregulation, and entrance of foreign investors to the service markets. Limitation: The findings are from the analysis only based on the available researched data in English, Korean, Chinese, and Japanese languages. Due to the fact, it results in lack of data on international trade in services of Mongolia. Originality/Value of paper: This study contributes to the understanding of positive and negative factors