Transformations  in
Business & Economics

ANALYSIS ON THE VALUE-ADDED SHARE OF CHINA'S SERVICE EXPORT FROM THE USA, JAPAN AND THE EU：A STUDY OF CHINA'S SERVICE TRADE
Yuegang Chen, Tingyue Kan, Yan Wu, Xiaosong Zheng

ABSTRACT. With the combination of WIOD table and KWW method, this paper measures China's service value-added share from the sources of the USA, Japan and the EU, China's GVC participation index and position index to analyze the situation of Chinese service development in GVC, especially its interaction with America, Japan and the EU. Main results are indicated as follows: Though China's overall scale of service value added is growing fast, its status is still lower than the USA, Japan or EU and also vulnerable to global economy. China's service position continues to move upward and its driving force mainly comes from the growth of knowledge-intensive industries. China's service is more vibrant and promising. The service trade between China and the USA, Japan, EU is closely interconnected, but the source countries of China's value-added take on a diversification trend. The foreign share of knowledge-intensive service industry is higher than that of labor-intensive and capital-intensive industries. There also exists heterogeneity between different sectors and the source countries of which are in accordance with each country's comparative advantages .

KEYWORDS:  service trade, global value chain (GVC), World Input-Output Tables (WIOT), value added in export.

JEL classification:  P20, Q12, Q19.