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The changing comparative advantages and structure of China's service exports.

Introduction

As an important part of international trade, global exports of services have undergone rapid development since the 1980s. They grew faster than merchandise exports in most of the years. The service export value of services in 2007 was more than 8.5 times that of 1982. This is even true in the case of China. China's service exports soared during the last quarter century, increasing in value from $2.51 billion in 1982 to $117.15 billion in 2007, an increase of nearly 46 times. (1) The years since the late 1990s have witnessed steady growth in China's service exports. Meanwhile, China's rank in service trade has risen from 29th in 1982 to 7th in 2007 (see Table 1). Over the same period, its share in global service exports increased from 0.6 per cent to 3.5 per cent and the relative export share (RES) of China's trade in services soared from 3.9 per cent to 24.5 per cent. (2)

Services were one of the key topics in the negotiation of China's accession to the World Trade Organization (WTO). China's commitments to the General Agreement in Trade and Services (GATS) represented the most radical services reform programme negotiated in the WTO. The country's service sector has undergone major reforms in accordance with its commitments under GATS. Sheng conducted a quantitative study of China's trade liberalisation in services. This study suggested that China committed more in opening its service sector than a developing member should have. (3) Matto reached a similar conclusion. (4) However, China's service trade position in the world remains weak. China's openness in services is 13 per cent to 20 per cent that in merchandise. (5)

Nevertheless, the comparative advantages (CA) and structure of China's service exports have been changing since the country opened its doors to the outside world in the late 1970s. Most studies of China's service exports focus more on CA than structure, and less on the link between CA and export structure. The purpose of this paper is to examine the changing CA and export structure of China's service sectors, with a view to linking them.

Literature Review

Some scholars have studied the CA and international competitiveness of China's service exports after its accession to the WTO. Trade Competitiveness (TC) and Revealed Comparative Advantage (RCA) are two of the most frequently used indicators to measure China's CA in service trade. (6) Zhang used these two indicators to analyse the competitiveness of China's trade in services. Her study showed that China, on the whole, was weak in international service trade. (7) Wang furthered the study to sub-sectors and reached similar conclusions on the whole and at the sectoral levels. Wang found that China was weak in service sectors except travel and "other businesses", especially the high-value-added sectors such as finance, insurance and information services. (8)

Chen constructed two samples to study the RCA of China's trade in services for 2002. He found that China was weak in service exports as a whole, and at the sectoral level only travel and communication services had obvious CA. (9) Compared with other economies, Wang and Gao argued that China's services and most service sectors were generally far behind world averages. Zhao and Li divided services into labour-intensive services, capital-intensive services and technology-intensive services. (10) China was comparatively weak in services as a whole and was especially poor in the case of some capital-intensive services and technology-intensive services.

Tang discussed China's trade in services in terms of openness, trade volume and trade structure. She found that service development in China did not keep pace with its economic development, and that the export structure of services was not reasonable. (11) Xu reached the same conclusion. (12) Qin and Kong argued while China's service export structure has improved, it was still unreasonable, as it was dependent too much on travel services (resource-intensive services) and transportation services (labour-intensive services) and not enough on knowledge- and technology-intensive services. (13)

Undoubtedly, these studies provide a good foundation for this paper. Yet, there are limitations: (1) the observation period is after 1997, not long enough to comprehensively follow the changes in China's service trade; (2) most studies examine the service sector as a whole or three categories at most, lacking analysis of the various items under other commercial services, which are far more important for China; (3) the RCA employed is Balassa's version, which has proven to be problematic in discussing cross-time evolution and in econometric analysis; 14 and (4) the CA and export structure of service exports are discussed separately: no linkages between them are discussed.

To further the research in this area, this paper differs in several respects. Firstly, a modified RCA is employed to determine the CA of China's services as a whole and by sectors as well. Secondly, the paper examines a longer period (1982-2007) to show China's changing CA in service exports. Thirdly, the export structure of services is linked with CA in discussion. Fourthly, focus is given to value-added service sectors, i.e., those under the 'other services' category (described below).

Methodology and Data

Modifying the RCA Index

Statistical indicators used to analyse international specialisation are manifold, of which the most commonly used is the Balassa Revealed Comparative Advantage (RCA) index. (15) It is defined as the ratio between a country's share in world exports of certain merchandise to its share in total world exports, and is calculated as follows:

[RCA.sub.ci] = [X.sub.ci] / [X.sub.wi] / [X.sub.ci] / [X.sub.wi] (1)

where Xci is the exports of country c in sector i, Xct is the total exports of country c, Xwi is world exports in sector i, and Xwt is world total exports. Thus, the numerator is the share of country c for sectors i in world exports, whereas the denominator represents country c's share for the total exports in the world. RCAci is the revealed comparative advantages of country c in sector i. This index takes values between 0 and + [infinity]. (16) A value less than 1 characterises sectors in which a country is relatively less specialised with respect to the world economy. On the other hand, a value greater than 1 denotes sectors in which a country is relatively more specialised.

Due to the asymmetric nature of the two sides along the dividing value (RCA = 1), some problems arise in over-time comparisons and in econometric application of RCA. To overcome these, some economists take the logarithmic value of the RCA index value; others use different ways to compute the index. Proudman and Redding assign the sectoral average share of country c in world exports as denominator. (17) This index is denoted as Revealed Mean

Comparative Advantage (RMCA), and computed by the following equation, where n is the number of sectors:

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] (2)

The mean value of the RMCA is to be unity, 1. Liu, Yue and Xu derived a similar equation to analyse the changing international patterns of Eastern Asian economies from 1980 to 1997. (18) However, the RMCA index is still not symmetric in nature and is not suitable for dynamic analysis over time. Fagerberg suggested using a small number to adjust the original RCA index, making it a Revealed Symmetry Comparative Advantage (RSCA) index. (19) Dalum, Laursen and Villumsen and Laursen applied the number 1 to this method, as shown in equation (3). (20)

[RSCA.sub.ci] = [RCA.sub.ci] - 1/[RCA.sub.ci] + 1 (3)

The index computed by the equation (3) takes the values between - 1 and + 1. A positive RSCA suggests country c has comparative advantages (CA) in sector i, while a negative RSCA shows country c has comparative disadvantages (CDA) in sector i. This improved RCA index is used in this paper to observe the changing CA in China's service exports.

Data

Data used in studies of China's service trade comes from three sources: the WTO International Trade Statistics (WTO-ITS), China Balance of Payments J. Proudman and S. Redding, "Evolving Patterns of International Trade", Reviews of International Economics 8(3) (2000): 373-96. (China BOP) and the UNCTAD Database. However, they differ slightly in statistical methods and items (Table 2).

All three systems consist of three categories of services: transportation, travel (tourism) and other (commercial) services. Statistics from the WTO do not include government services because they are not market-driven. Under the category "other (commercial) services", eight items are included in the WTO statistics: communications, construction, insurance, financial, computer and information services, royalties and license fees, other business services, personal, cultural and recreational services. UNCTAD adds government services while in the China Balance of Payments, there are three different items (movies and audio-video products, consultation, advertisement and publicity).

In the studies mentioned above, the data for China are typically quoted from China Balance of Payments, while data for other economies are either from the WTO or China International Statistics Yearbook. Due to different data sources, computing results lack comparability among economies.

To get comparable results among economies, the data used in this paper is quoted from the UNCTAD online database, (21) a universally-used data source with a complete series. As China was not a WTO member until November 2001, detailed China service trade data provided by the WTO is available only for recent years. The statistical system used by China Balance of Payments differs considerably from the one adopted by the WTO and UNCTAD.

The UNCTAD online database contains service trade data for 196 economies. (22) The data for service trade includes the total service trade value and those for three service categories and sectors under "other services" from 1980 to 2007. However, not every economy has the full details. The data for China started from 1982 to 2007 for the total service trade value, and the data for the three service categories are from 1982 to 2006, while detailed data for the sectors under "other services" are from 1997 to 2006. Thus, the RSCA computation for and analysis of the three service levels are in accordance with the respective periods. (23)

When calculation and analysis are conducted for service as a whole, merchandise export data are included and for a longer period. When calculation and analysis are conducted for different service categories and sectors, it is done only within the scope of service with merchandise trade data being excluded.

The Changing Comparative Advantages

Whole Service Industry

The calculation of the RSCA is based on the global export value and individual economy export value, and RSCA shows the individual economy's CA in the international market. Based on the data drawn from the UNCTAD online database, the author calculates the RSCA index for China's exports in merchandise and services as a whole respectively for 1982 to 2007 (Figure 1). The RSCA index for commodities has always been between 0.042 and 0.065, which suggests a stable CA in the international market. However, as the values are very low, Chinese merchandise does not have much CA as a whole. Not surprisingly, China's service exports have CDA as its RSCA index ranges from -0.245 to -0.390.

Figure 1 clearly shows the changing CA, CDA to be exact, for China's service exports as a whole. Generally speaking, China did not have CA in service exports, and even worse, the situation deteriorated over the observation period. Three stages can be identified for the whole period. The RSCA improved slightly before falling sharply in 1986. The "U" shape characterises the second stage, which lasted from 1986 to 1994.

[FIGURE 1 OMITTED]

After several years of reform in the manufacturing sector, the share of low-priced products gained in the international market, and export values grew at 13.1 per cent in 1986 and at a steady rate up to 1992. During this period, service exports decreased until 1989. The service sectors were not as open as the manufacturing sectors. The focus of China's economic reforms on the manufacturing sectors may explain, to a large extent, the decrease in the export value of service exports. The RSCA index remained relatively stable from 1989 to 1991, and then dramatically rose between 1991 and 1994.

The stagnant economic situation and economic adjustment (typically in the manufacturing sectors) during the first half of the 1990s contributed to the slow export growth in manufactures. On the contrary, the service sectors, travel in particular, boomed during that period. This led to the increase of the RSCA in the service sector.

The third stage, which began in 1995, saw the decrease of the RSCA index. The RSCA index value has slipped in recent years to as low as that of the bottom in the U-shape curve. This may suggest that the Chinese service industry is far behind the manufacturing sectors in terms of competitiveness and CA in the world. China is still not a powerful service trader though it ranks 7th in terms of service export value.

The Three Categories of Services

As mentioned earlier, not every economy has detailed data for the three categories of services (transportation, travel and other services) and there is no global data for the three categories. Therefore, a sample of selected economies is needed to compute the RSCA index for these three service categories. The author constructs a sample (sample 1) containing 136 economies with annual export value in services over 1 billion. The total export value in services of the 136 economies accounts for at least 92 per cent of the world (96 per cent in some years). Thus, they can be regarded as the whole world in this sense. The RSCA index for the three service categories for 1982 to 2006 period are computed based on sample 1. Figure 2 shows the evolution of the RSCA index.

The three service categories demonstrate three patterns of their RSCA evolution. The RSCA for travel services has been positive except for the year 1990, and it is in general rising. It was stable during the 1980s. It rose steadily from a low in 1991, then after reaching a peak of 0.280 in 2001, it decreased in recent years.

[FIGURE 2 OMITTED]

The RSCA for transportation shows a very different evolution pattern. The CA of transportation services declined in general. In the 1980s it showed CA, for which the RSCA value was between 0.278 and 0.045. Then it decreased to be CDA from 1992 to 2005. There was a very obvious "V" shape during the period from 1990 to 2006 with 1999 serving as the bottom of the "V", for which the RSCA index value was -0.420. After 1999, the RSCA index rebounded and reached 0.018 in 2006.

The evolution of the RSCA index for "other services" provides the third pattern. It displays CDA throughout the period. However, it showed a rising trend, with the RSCA index value rising from -0.370 in 1982 to -0.124 in 2006. This means it is on the rise though it shows CDA. Before 1993, there was a great increase in the RSCA index value. Then it experienced a slight fluctuation.

These three categories of services may be roughly regarded as resource-intensive (travel), capital-intensive (transportation) and value-added services ("other services"). The changing patterns reflect China's competitiveness in the world in the respective service fields.

Other Services

The author goes on to calculate the RSCA index for sectors under the category of "other services". The data availability for these sectors is limited, and only those after 1997 are available for China. Therefore, the author selected 42 economies from sample 1 to compose sample 2. These 42 economies are those that have large service export values and detailed data for these sectors since 1997. They account for at least 84 per cent of global export services in value. Based on sample 2, the author calculates the RSCA for China's exports in "other services" for the 1997 to 2006 period (Figure 3).

[FIGURE 3 OMITTED]

The eight sectors (government services excluded) under "other services" can be organised into four groups in terms of the RSCA index value. At the bottom of Figure 3, financial services, royalties and license fees, and personal, cultural and recreational services represent services with the least CA. The index values for them were well below -0.5, and improved very little. The second group includes computer and information services, and insurance services in the middle of Figure 3. They also do not have CA, but have a better position than the three sectors mentioned above. The situation for computer and information services improved considerably.

At the top of Figure 3 are construction and other business services. They form the third group. The RSCA index values for these sectors were positive during the same period except for construction in 1997. The RSCA for communication services fluctuated a lot, changing from positive to negative and can be regarded as the fourth group. These groups indicate that as far as other services are concerned, China has CA in construction and other business services, unstable CA in communication services and CDA in all others.

The Changing Export Structure

Services in China are not as open as the manufacturing sectors. Thus, the service export value is very low compared with that for merchandise exports. Services as a whole account for about 10 per cent in China's total exports (Figure 4). There were not many changes during the observation period. China is not a major player in service trade. This is in accordance with its RSCA index value during this period. There is much that can be done to improve China's trade position in services.

Contrary to the service share in total exports, the export shares of the three categories of services changed greatly within total service exports (Figure 5). As can be seen, three critical points (years) can be identified: 1987, 1991 and 2003. Transportation dominated China's service exports before 1987, but its share decreased quickly. In 1982, transportation, travel and other services accounted for 52.3 per cent, 28.0 per cent and 19.7 per cent respectively in total service exports, while in 1987 they had almost equal export shares with 30.3 per cent for transportation, 38.2 per cent for travel and 31.5 per cent for other services.

Transportation regained its dominant status between 1987 and 1991. "Other services" again had the smallest share. However, the situation changed after 1991. The export share for transportation fell dramatically while that for the other two categories increased rapidly, especially for travel. Travel has been the leading export category since 1993, and it export share reached a peak of 53.7 per cent in 1999. Transportation accounted for only 9.2 per cent in the same year. From 1993 to 1999, "other services" kept their share between 35 and 40 per cent. The year 2003 saw "other services" take the lead with 45.8 per cent in total service export. Transportation and travel were 16.9 and 37.2 per cent in 2003. In the years thereafter, travel and 'other services' took their lead in turn with the export share of some 40 per cent, transportation accounted for about 20 per cent.

[FIGURE 4 OMITTED]

[FIGURE 5 OMITTED]

Comparing Figure 5 with Figure 2, it is clear that the curves for respective service categories in these two figures are similar, indicating that the export share and their CA evolution matched. The author concludes that "other services" need to be improved as they have about a 40 per cent export share.

Examination of the export structure of "other services" helps explain why "other services" does not have CA. Table 3 shows the export structure within "other services". The "other business services" sector had a far larger export share than the sum of all other sectors, accounting for 86.6 per cent in 1997 and 78.2 per cent in 2006. (24) All other sectors (government services excluded), remained virtually unchanged in terms of export share except computer and information services. In 2006, computer and information accounted for 8.0 per cent, construction accounted 7.4 per cent, and all others had less than 2 per cent export shares.

Export shares reflect their CA within this category. The changes in the export share of computer and information services were in accordance with the evolution of the RSCA index value though it showed no CA. The export share of communications fitted the changes of its RSCA index value. The "other business services" sector showed CA and had a large export share. Others with CDA had very small export proportions.

Thus, "other business services" dominated other services. These services include merchanting, other trade-related services, operational leasing services, legal services, accounting, auditing, bookkeeping and tax consulting services, business and management consulting and public relations services, advertising, market research and public opinion polling, research and development services, architectural, engineering and other technical services, agricultural, mining, and other on-site processing services, etc. (25) Compared with financial services, insurance services, communication services, and loyalty and license fees, these services may not be so much value-added. The larger share they account for, the less CA the "other services" has.

Concluding Remarks

This paper examines the changes in comparative advantages and structure of China's service exports since the 1980s. The author analyses changes in China's service exports on three levels based on the RSCA index, a modified RCA index. Though China's export in services has been developing very rapidly, services as whole show no CA compared with merchandise exports. And the export share of services is small--with about 10 per cent--which coincides with the lower degree of openness in services than in merchandise.

With regard to the three categories of services, the CA in travel increased greatly, while that of transportation changed from having CA to CDA. Although the category of "other services" still has CDA, it is on the rise in terms of RSCA index. The changes in export share of these three categories are similar to the changes of their respective RSCA index values. Transportation dominated China's service exports in the 1980s. However, travel and "other services" have now roughly equalled export shares of around 40 per cent, while transportation accounts for about 20 per cent.

Under the category of "other services", "other business services" and construction have CA while the CA in communication services has been unstable and other sectors shows CDA. Computer and information services improved its CA position greatly though is still shows CDA. The RSCA index for insurance decreased considerably. Within the category of "other services", "other business services" has always been the largest export sector, with much larger export share than the sum of all others. However, the services in this sector are not as value-added as others. The value-added services such as financial services, loyalty and license fees, have very small export shares and low RSCA index values.

With the rapid progress in trade liberalisation, China will become more open in services. Accession to the WTO has imposed challenges on China's service sectors. To make services benefit China, much needs to be done to improve quality, and policies must focus on the "other services" category. The author thanks the reviewers for their helpful comments and advice. Thanks are also given to the China Scholar Council for research funding. Opinions and mistakes remain the author's.

(1) UNCTAD, UNCTAD Handbook of Statistics Online, 2008 at <http://www.unctad.org/Templates/Page.asp?intItemID=1890&lang=1> [10 Jan. 2009].

(2) Relative export share (RES), a concept borrowed from relative market share (RMS) in marketing, is the ratio between the concerned economy's (i) export share (ES) in the world and that of economy (j) with the largest export share besides the economy (i ) in question. It is calculated as RESij = ESi /ESj , where ESi is the export share of economy i and ESj is the export share of economy j. Here it is the ratio between China's export share in world service exports and that of the United States as the United States accounts for the lion's share in world service exports.

(3) Sheng Bin, "Evaluation of and Analysis on China's Service Liberalization with its WTO Accession", Shijie jingji (World Economy) 8 (2002): 10-8, 80.

(4) A. Mattoo, "China's Accession to the WTO: The Services Dimension", Journal of International Economic Law 6(2) (2003): 299-339.

(5) Feng Xuhong and Sheng Bin, "A Quantitative Analysis on Market Access of China's Trade in Service", Tianjin shifan daxue xuebao (Journal of Tianjin Normal University) 3 (2006): 20-4.

(6) TC is computed as TC = (X - M)/(X ??M), where X and M represents export and import respectively. RCA is discusses in the next section.

(7) Zhang Xiaoli, "The Competitiveness of China's Trade in Service and Strategies for Development", Guangzhou jingmao guangli xueyuan xuebao (Journal of Guangzhou Finance and Trade Management College) 3 (2002): 42-5, 50; and Wang, 2005.

(8) For the service classi.cation, please refer to the next section.

(9) Chen Dazhong, "A Quantitative Analysis on the Revealed Comparative Advantage of China's Trade in Service", Shanghai jingji yanjiu (Shanghai Economic Research) 5 (2003): 17-24.

(10) Wang Xiaoping and Gao Zhongting, "Analysis on the Competitiveness of China's Trade in Service and Strategies", Productivity Study 9 (2004): 60-1, 97; Zhao Shuhua and Li Hui, "A Quantitative Study on the Competitiveness of China's Trade in Services", Beijing shangye daxue xuebao (Journal of Beijing Business University) 1 (2005): 6-9.

(11) Tang Xiaofeng, "On Competitiveness of China's Trade in Service: An International Perspective", Jingji pinglun (Economic Review) 2 (2003): 52-5.

(12) Xu Xioaling, "Analysis on the Competitiveness of China's Trade in Service", Jiangxi shehui kexue (Jiangxi Social Science) 7 (2005): 151-4.

(13) Qin Qianglong and Kong Yunlong, "The Changes of China's Export Structure in Service: An International Perspective", Shangye jingji wecui (Business Economic Readings) 3 (2003): 14-7.

(14) B. Balassa, "Trade Liberalization and 'Revealed' Comparative Advantage", The Manchester School 33 (1965): 99-12; J. Proudman and S. Redding, "Persistence and Mobility in International Trade", Ch. 2 in Openness and Growth, ed. J. Proudman and S. Redding (Bank of England, 1998); J. Proudman and S. Redding, "Evolving Patterns of International Trade", Reviews of International Economics 8 (3) (2000): 373-96. Keld Laursen, "Revealed Comparative Advantage and the Alternatives as Measures of International Specialisation", Danish Research Unit for Industrial Dynamics (DRUID) Working Paper, No. 98-30, 1998.

(15) See P. L. Iapagre, "Measuring International Specialisation", International Advances in Economic Research 7(2) (2001): 173-83; B. Balassa, "Trade Liberalization and 'Revealed' Comparative Advantage", The Manchester School 33 (1965): 99-123.

(16) In fact, the upper limit of RCA is Xwt/Xct, while the value of Xwt/Xct varies from sector to sector and from time to time. See De Benedictis, Luca. "Three Decades of Italian Comparative Advantages", World Economy 28(11) (2005): 1679-1709.

(17) J. Proudman and S. Redding,"Persistence and Mobility in International Trade", Ch. 2 in Openness and Growth, ed. J. Proudman and S. Redding (Bank of England, 1998);

(18) Liu, Yue and Xu (2001) argued that the RCA of their version could be used to analyse the export structure changes, but as the author examined the shapes of their RCA and export structure over time, there seems no relationship between them.

(19) J. Fagerberg, "User-producer Interaction, Learning and Comparative Advantage", Cambridge Journal of Economics 19 (1995): 243-56.

(20) B. Dalum, K. Laursen and G. Villumsen, "Structural Change in OECD Export Specialization Patterns: Despecialization and 'Stickiness'", International Reviews of Applied Economics 12 (3) (1998): 423-43; and K. Laursen, "Revealed Comparative Advantage and the Alternatives as Measures of International Specialisation", Danish Research Unit for Industrial Dynamics (DRUID) Working Paper, No. 98-30, 1998.

(21) See UNCTAD, UNCTAD Handbook of Statistics Online, 2008.

(22) Because the time span is from the 1980s to the present, data for some economies may not be reported separately or be available for some years. For example, data for Belgium and Luxemburg were reported together before 2002 and separately thereafter. It is similar for the former Soviet Union states.

(23) The three service levels in this paper refer to total service, service of three categories and sub-service sectors under "other services".

(24) To be exact, "other business services" is not a service sector, as it is residual statistical item, covering those not included elsewhere.

(25) See Manual on Statistics of International Trade in Services developed and published jointly by UNCTAD, WTO, EU, UN Statistic Division, OECD and IMF in 2002.

ABOUT THE AUTHOR

HE Shu-Quan (anthonyho@shu.edu.cn) is Associate Professor of Economics at Shanghai University and a Post-Doc Researcher at the Economic Growth Center at Nanyang Technological University, Singapore. He received his PhD in economics from Wuhan University in 2006. His main research interests are Chinese economy, trade in agricultural and resources products and economic integration.
Table l. Chanffinff Ranks of China and Major Service Export
Economies, 1982-2007

Year US UK Germany France Japan Spain

1982 1 4 3 2 5 8
1985 1 3 4 2 5 8
1991 1 4 3 2 6 9
1993 1 4 3 2 5 9
1996 1 2 3 4 5 8
2000 1 2 3 4 5 7
2001 1 2 3 4 5 6
2002 1 2 3 4 5 6
2003 1 2 3 4 5 6
2004 1 2 3 4 5 6
2005 1 2 3 4 5 7
2006 1 2 3 4 5 6
2007 1 2 3 4 5 6

Year China Italy Netherlands Hong Kong

1982 29 6 7 17
1985 26 6 7 13
1991 25 5 7 11
1993 21 6 7 10
1996 16 6 7 9
2000 14 6 9 11
2001 13 7 8 10
2002 11 7 8 9
2003 9 7 8 10
2004 9 7 8 10
2005 8 6 9 11
2006 8 7 9 11
2007 7 8 9 11

Note: Hong Kong is regarded as a major service export economy in that
it ranked 9th to 11th since 1991. India was no. 10 since 2005.

Source: UNCTAD (2008).

Tab1e 2. Comparison of Service Class~fications by WTO, UNCTAD and China

Sources WTO

Items Transportation

 Travel

 Other Commercial Services

 Communications Services

 Construction Services

 Insurance Services

 Financial Services

 Computer and Information
 Services

 Royalties and License Fees

 Other Business Services

 Personal, Cultural, and
 Recreational Services

Sources UNCTAD China Balance of Payments

Items Transportation Transportation

 Travel Tourism

 Other Services Other Services

 Communications Services Communications Services

 Construction Services Construction Services

 Insurance Services Insurance Services

 Financial Services Financial Services

 Computer and Computer and
 Information Services Information Services

 Royalties and license fees Fee for Patent or Royalty

 Other Business Services Other Business Service

 Personal, cultural, and Movies and Audio-video
 Recreational Services Products

 Consultation

 Advertisement and
 Publicity

 Government Services not Government Service not
 included elsewhere Elsewhere Classified

Source: Author's collections.

Table 3. Export Structures within Other Services, 1997-2006 (%)

 1997 1998 1999 2000 2001

Other business services 86.6 77.2 76.2 72.8 77.5

Computer and 0.9 1.5 2.7 3.4 4.2
information services

Construction 6.2 6.6 10.1 5.7 7.6

Communications 2.9 9.1 6.1 12.8 2.5

Government services not 0.7 0.2 0.9 2.7 4.0
included elsewhere

Insurance 1.8 4.3 2.1 1.0 2.1

Royalties and licence fees 0.6 0.7 0.8 0.8 1.0

Financial services 0.3 0.3 1.1 0.7 0.9

Personal, cultural and 0.1 0.2 0.1 0.1 0.3
recreational services

 2003 2004 2005 2006

Other business services 81.4 81.0 78.4 78.2

Computer and 5.1 6.6 6.2 8.0
information services

Construction 6.0 6.0 8.7 7.4

Communications 3.0 1.8 1.6 2.0

Government services not 1.7 1.5 1.7 1.6
included elsewhere

Insurance 1.5 1.5 1.9 1.5

Royalties and licence fees 0.5 1.0 0.5 0.6

Financial services 0.7 0.4 0.5 0.4

Personal, cultural and 0.2 0.2 0.5 0.4
recreational services

Source: Author's own calculations based on UNCTAD (2008) data.
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Date:Mar 1, 2009
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