International Service Trade of East Asian Region: Factors Influence on the Share

International Service Trade of East Asian Region: Factors Influence on the Share

The purpose of this study is to analyze factors affecting the share of service trade in international trade focusing on East Asian geographical areas such as China, Hong Kong, Macao, Taiwan, Mongolia, Korea and Japan. Services have been known for decades as the most important sector of the economy, especially in developed countries, and are now increasingly recognized for their competitiveness in service trade in the eastern region of the Asian continent. It focuses on China, which has a huge impact on neighboring countries in the eastern region, and focuses on service trade opportunities that can arise from China s trade growth. First, this study analyzes liberalization and development of international trade in services of each country. Second, as international service trade is dominated by infrastructure services, it investigates transportation, telecommunications, finance, audiovisual, tourism and insurance services in each region. The study then provides a comprehensive assessment of the international trade in services of East Asian Region and an analysis of their potential. As a theoretical study, qualitative methods are used on the basis of literature review to establish a theoretical framework that can provide a perspective of international trade and its position in the context of this research. The analysis shows that the proportion of service trade is sensitive to various factors such as technology development, process liberalization, privatization and deregulation, and foreign investor inflow into the service market