Abstract：This paper calculates the technical complexity index of service trade export and puts it into a dynamic panel model of industrial transformation and upgrading, with the cross-country panel data of G20 countries. The main conclusions are as follows. For partial services export, business services, tourism and transportation have had higher export technical complexity, however, government purchase, insurance and telecommunications have been lower. America, Great Britain and France have higher export technologies, while those of India, China and Indonesia are lower. In addition, there are significant positive correlation between export technical complexity and industrial transformation and upgrading. In conclusion, China government should strengthen the human capital accumulation of service trade, and promote high-end service outsourcing development to expand service export technical complexity. At the same time, China government should also reinterpret the basic logic of industrial transformation and upgrading. If China hopes to entrench its position in the world service trade, the government has to change the policies from the high technology industry to dominant industrial combination.
Keywords: Services Trade, Export Technical Complexity, Transformation and Upgrading, GMM Estimation
source:Finance & Trade Economics ,No5,2014