Services Policy Reform in the Peopleâ€™s Republic of China : Before and After the Global Financial Crisis
ï»¿ï»¿Adverse effects of the global financial crisis on international trade include falling demand, increased trade protectionism, and drying up of trade finance. Much attention has focused on the impact of the crisis on goods trade; however literature on its impact on services trade is limited, especially on the services trade in the Peopleâ€™s Republic of China (PRC). This paper analyzes the impact of the global financial crisis on the PRCâ€™s services trade, discusses policy responses by the government, and puts forward policy suggestions. The main findings of the paper are as follows : Although the global economic and financial crisis spawned a synchronized recession leading to a contraction in the PRCâ€™s services trade, the crisis has had a moderate effect on the PRCâ€™s trade in services because of the lower internationalization of services. The PRCâ€™s trade surplus in goods decreased and its trade deficit in services increased after the crisis. Structural reforms are now urgently needed to help support the recovery of output and trade. A possible solution to rebalancing the trade balance (trade surplus in goods and trade deficit in services) would be to expand trade in services. The degree of openness for services is lower than for goods in the PRC. Further liberalization in services trade is the appropriate policy choice for the government. Continued policy and regulatory reform in favor of services trade will be vital to supporting economic recovery. Improved market access and national treatment of foreign service suppliers would help enhance the productivity and competitiveness of local services firms and upgrade the industry structure of services, which is essential for the countryâ€™s economy to change from being driven by exports to being driven by domestic demand. Decreasing trade and investment barriers would help expand services trade and investment, and increase PRC involvement in the globalization of services.
|Date of creation:||Aug 2011|
|Contact details of provider:|| Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200|
Web page: http://www.eaber.org
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:eab:financ:23232. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.