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Liberalization of service trade and value added of export

MA Hong1 LI Xiaofan2

(1.Associate Professor at School of Economics and Management, Tsinghua University )
(2.Ph.D. candidate at School of Economics and Management, Tsinghua University)

【Abstract】After expanding at a fast pace for nearly 40 years, the Chinese economy has gradually stepped into a “new normal” stage that emphasizes quality of growth, which requires further economic liberalization to “develop an open economy of higher standards.” To achieve industrial upgrading and move up in global value chain, it is a must for China to reduce service trade barriers, appropriately open up service sectors, and encourage foreign investment in producer services. Services liberalization will promote the development of services and manufacturing sectors, and help balance the international balance of payments structure. Moreover, with the direct substitution effect and implicit trade effect, the opening-up of trade and investment in services will increase the value added embedded in manufacturing exports.

【Keywords】 liberalization of services; productivity of manufacturing; value added of export;


【Funds】 National Natural Science Foundation of China (71673160)

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    [8]. [1] Producer services include transportation, wholesale and retail, telecommunications, finance, and other business services such as accounting and scientific research. [^Back]

This Article


CN: 11-3799/F

Vol , No. 02, Pages 82-92+6

March 2018


Article Outline


  • 1 Liberalization of China’s service industry
  • 2 The positive role of the liberalization of the service industry
  • 3 Liberalization of FDI in the service industry and domestic value added of the manufacturing
  • 4 Conclusion
  • Footnote