BRICS Comparative Study of Service Trade Competitiveness

BRICS Comparative Study of Service Trade Competitiveness

In this paper, we compare the competitiveness of BRICS service trade with trade competitiveness index (TC) and dominant comparative advantage index (RCA). The results show that: China has the highest share of the international market for service trade but not competitiveness; India has the strongest service trade among the five countries; the service trade in Russia and Brazil is relatively slow; the service market in South Africa has the lowest share in the international market but the overall competition Power is stronger than Russia and Brazil.

Since the outbreak of the global financial crisis in 2008, the unemployment rate in the major developed countries has remained high. The market demand is sluggish and economic growth is sluggish. Emerging market economies represented by the BRICs of Brazil, China, India, Russia and South Africa have enjoyed a strong momentum of growth and have contributed over 50% of the world’s economic growth. The total economic output of the BRICs accounts for about 25% of the total world economy and their total foreign trade accounts for about 17% of the total world trade. Along with the rapid economic growth, the trade in services of the BRICS countries also witnessed a rapid development. The total trade volume increased from 194.2 billion U.S. dollars in 2002 to 1,021.5 billion U.S. dollars in 2012, and the corresponding international market share increased from 6.15% to 12.45% . This article attempts to provide a useful reference for us to better understand the development of service trade in our country, adjust the direction of development of service trade in our country and optimize the industrial structure.

Brazil’s communications, construction sector has a competitive edge, especially in construction, but has also seen some declines in recent years. In the computer and information, patents and licensing departments, the competitive disadvantage is more obvious. China’s construction, computer and information services have certain competitive advantages. Among them, the competitiveness of construction services trade has continued to grow since 2009, while the tourism sector has weak advantages. However, competition in insurance and patents and franchised services has been significantly disadvantaged. India’s computer and information services have a strong competitive advantage, with an average of 0.85. Followed by the communications sector, construction and transportation services are at a competitive disadvantage, especially in transport. The disadvantages are obvious. Russia’s transport services are positive and significantly higher than the other four countries. However, since 2002, the competitiveness of the sector has been declining and its advantages have been gradually lost. Other sectors have shown varying degrees of competitive disadvantage. South Africa’s tourism, construction and financial services have strong competitive advantages. In particular, the competitiveness of the financial sector has obvious advantages. However, South Africa has shown a clear competitive disadvantage in transportation, insurance and patent and concession services.

The development of service trade in the five countries shows a big difference. Overall, except for India, the other four countries trade in services do not have a competitive advantage, but in the modern service industry, they are at a competitive disadvantage. Among them, the service trade in China is big but not strong, the international competitiveness of India’s service trade is strongest among the five countries, the service trade in Russia and Brazil is relatively slow, and the competitiveness of service trade in South Africa is slightly stronger than that of Russia and Brazil.

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