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International Conference on Engineering and Business Management (EBM 2010 PAPERBACK)

Chengdu,China,China,3.24-3.26,2010

ISBN: 978-1-935068-05-1 Scientific Research Publishing, USA

Paperback 6066pp Pub. Date: March 2010

Category: Engineering

Price: $280

Title: Trade in Service: Cross-border Trade and Commercial Presence Evidence of Complementarily ----Analysis based on bilateral trade flow in service of USA
Source: International Conference on Engineering and Business Management (EBM 2010 PAPERBACK) (pp 4441-4444)
Author(s): Ning Huang, Dept. of International Trade, Economy School, Xiamen University, Xiamen, China
Liqing Lin, Dept. of International Trade, Economy School, Xiamen University, Xiamen, China
Meilian Xu, Dept. of International Trade, Economy School, Xiamen University, Xiamen, China
Abstract: Abstract: Through the use of the gravity model and the statistical figures of service trade provided by BEA, the author makes an empirical research on the relationship between cross-border trade (Mode 1) and commercial presence (Mode 3) in service trade and finds that each increase of 1% in the amount of commercial presence sees an increase of 0.407% in that of cross-border trade. This means that the two modes complement rather than substitute each other. For further confirmation of such a relationship, the author makes additional empirical analyses on the detailed figures of the two structures and comes to the same conclusion.
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