With the continuous development of information technology and the deepening of international division of labor, the tradability of services has been continuously enhanced. In particular, the World Trade Organization (WTO) has included service trade, which has effectively promoted the liberalization of service trade. The status of service trade has become increasingly prominent in international trade. Many aspects of international trade have shown corresponding changes around the development of service industry. The phenomenon of adjustment.
The trend of global economic service is obvious. In 2016, the world’s service industry accounted for 65.08% of GDP growth, more than half of global employment came from the service industry, and the service industry became the largest provider of global employment opportunities.
The service industry has become an important part of promoting internationalization of production. At present, service industry investment accounts for two-thirds of global investment, accounting for three-quarters of foreign investment in developed countries. The service industry has surpassed manufacturing to become an important part of multinational companies to promote internationalization of production.
The main body of commodity internationalization began to shift from goods to services. In the past 20 years, service trade has grown faster than trade in goods. According to the traditional statistics of trade value, in 2017, trade in goods accounted for 77.6% of total trade, and the main body of commodity internationalization was goods, but according to the added value, service trade accounted for more than 40% of total trade. In particular, exports accounted for 46% of the value added of services in total global trade exports (46%). The mode of international trade is also shifting from trade in intermediate products to digital trade, and digital technology is changing the way of business and international trade.
It is worth noting that important negotiations affecting future international trade and investment rules also show that financial services, information services, e-commerce, regulatory consistency, natural person movement, digital trade, etc. related to service trade have become the focus of negotiations.
At the same time, the development of information technology has led to major changes in international trade, prompting the international community to re-recognize the role of services in global value chains. The Global Value Chain Development Report (2017), jointly published by the World Bank, the World Trade Organization, the Organization for Economic Cooperation and Development, the Asian Economic Research Institute and the Global Value Chain Research Center, and the service trade published by the Organization for Economic Cooperation and Development in 2017 Both the global economic report and the global economic report show that the service industry plays an important role in promoting the optimization and upgrading of industrial structure, total factor productivity growth and sustainable development.
First, the development of the service industry is conducive to macroeconomic stability. Two-thirds of global GDP growth, one-half of employment, and most of the new jobs added each year come from the services sector. The development of service industry and service trade plays an important role in ensuring the stability of a country’s macro economy.
Second, the service industry plays a connecting role in the global value chain. In today’s industrial integration development, the service industry is not an independent industry. The production services such as finance, transportation, and business services are not only the “glue” for connecting agriculture and manufacturing, but also can be used as an intermediate input to fully participate in agricultural and manufacturing production. The “propeller” of economic development.
Third, the service industry helps to enhance the international competitiveness of manufacturing. As an outsourcing investment, services are at the two ends of the smile curve in the global value chain production. They are the key intermediate inputs in the manufacturing process of manufacturing products. High-quality, low-cost and diversified production services are conducive to improving the competitiveness of enterprises. Increasing total factor productivity; as an internal input, the manufacturing industry is also showing a trend of service, that is, manufacturing companies are customer-centric, and in order to gain long-term competitive advantages, they are shifting from manufacturing to service-centered.
Fourth, the service industry is conducive to achieving sustainable economic development. UNCTAD research believes that the achievement of the SDGs depends on basic services such as health, education, health, energy, and infrastructure and innovation.