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1、the measurement of trade barriers index of trade inserviceswang leibusiness information management schoolshanghai institute of foreign tradeshanghai, chinaemaikahd on eywangabstract: the exist study of trade barriers of trade in services is summarized and appraised by the author, and method of trade

2、 barriers measurement of trade in services is applied by dynamical statistical indexes passche index of trade barriers of trade in services is applied by the author by decomposition of combined index and conversion of average number indexkey words: trade barriers of trade in services, statistical in

3、dex, index decomposition1. introduction1.1 internalization and globalization have been the irreversible development trend with the progress of human civilization. with the economic development of a country, the action of international trade brings about a striking effect. if a country becomes more d

4、eveloped, it will have more chance to open new channel on division of the labor. it will push further development of national economy.1.2 in the study of international trade, trade barrier research has been an important subject because it is key point of benefit allocation related with bilateral or

5、multilateral trade duri ng the developme nt of inter national trade, goods trade has substantial trade trait. hence, at the beginning development of goods trade, goods trade controlled the intensity of trade barrier through tariff. it will make the measurement of trade barrier easier. under the tren

6、d of international free trade, the function that the tariff used to control goods trade barrier is not no table as before. however, non-tariff barrier plays an importa nt role of con trolling the goods trade barrier, which in eludes technology barrier, green barrier and so on. it is hard to measure

7、these non-tariff barrier indices. trade in services itself is unsubstantial, and the process is not supervised by custom. hence, trade in services barrier mainly derives from whether exporter has the right of opening a business or is entitled to national treatment based on the third pattern. obvious

8、ly, the intensity of trade in services barrier is up toimporter policy that is why it is hard to measure the index.1.3 the existing study of trade in services barrier is composed of the following the first is the qualitative study. it is developed by some scholars and considered based on internation

9、al trade law and formation mechanism. for example, roberts (2000), cong-peng guo (2001), bo-lin ye (2002), xiao-bai jin (2010). the qualitative study is mainly analyzed by the mechanism and principle of trade in services barrier formation. and it is discussed how to control trade in services barrier

10、 logically. as a result, it could not bring a quantitative conclusion to trade in services barrier. the second is built on trade in services barrier letter of commitment and schedule of specific commitment. it is measured through the method of frequency by some scholars. for example, hoekman(1995),

11、claessens, glaessner(1998), mattoo(1998), nguyen-hong(2000),warren(2001), mcguire,schuele(2001),mcguire (2001 ),valckx (2002), hun-yi guo (2001), bin sheng (2002), xiao-geng tian and xiao-hong yin (2008). in fact, it is a synthetic evaluation method. the key of frequency method is how to assess inde

12、x weight. different countries have different emphasis and different understanding and policies. therefore, the weight of each evaluation index is different. the result need to be further discussed whether they are comparable the third is based on econo metric model to compare un der the ideal envir

13、onment of free trade and the substantial environment of trade in services barrier by some scholars. then, the intensity of trade in services barrier is in directly measured for example, hoekman (1999), dee, hanslow, phamdue(2000), nguyen,hong (2000), ray trewin, kairajan, kang(2001), warren(2001 ),g

14、onene and nieoleti (2001), dihel, shepherd (2007), lin-yan yu(2005), fang peng (2005) and lei wang (2010). this method is releva nt to many economic factors. as a result, it is not easy to build an appropriate model. moreover, the data also make calibration more complex and difficult because of the

15、following reason. the difficulty of collecting data the comparability of the data the variability of the data the mutual influence among variable1.4 the above study is static and the research object is an absolute value at certain time. because trade in services barrier is the product of policy and

16、system, it is difficult to be quantized an absolute value1.5 based on the above analysis, the author hopes to measure trade in services barrier by an index system. furthermore, the dynamic measurement method will give more accurate analysis.2. trade in services barrier index2.1 index is the result b

17、ased on comparing the same index in two different periods, which are report period and base period. it could show a dynamic change from base period to report period2.2 the in dividual in dex is to measure specific study object, and the formula iswherek = in dividual index,y = specific index in the r

18、eport period, and yq = specific index in the base period.2.3 the general index is to measure the total index of study object2.4 when the same index from multiple study objects is measured, it could not be calculated by counting simple individual index to get syn thetic index .it is because the unit

19、of measurement is differential to the same index, and the weight of the different individual is also differential to the same index. therefore, the same measurement factor needs to be introduced to do synthetic calculation and form synthetic index.(2)wheret = measurement factor.2.5 the level of trad

20、e in services in eludes import and export levels yet trade in services barrier in dex could be con sidered to be a synthesis result from various econo metric factors based on the level of trade in services. trade in services barrier plays an important role by policy and system. and it could be consi

21、dered to be a multiplier of synthetic econometric factors assumed that econometric factor and trade in services barrier are mutually independent. letyi=f(x,b) = xibi(3)whereyi = the level of trade in services, i = the time when measuring the data, (z = 1 presents report period ,z = 0 presents base p

22、eriod),x = synthetic econometric factorx can be splited up into various factors, the hypothesis is they exist as a multiplication model,x = nx.oi=i 1, andb = the level of trade in services barrier.2.6 the first step is to calculate individual index of trade in services. then according to industry cl

23、assification, the individual index would be measured based on table 1we haveki =兒/)%wherek,=the individual index of industry i,yi =trade in services index in report period of industry i, and yi0 = trade in services index in base period of industry it can be explained to every kind of index on the ba

24、sis of particular case02.7 the second step is to build synthetic index system based on formula 2.(4)憶一工x()b°=pb x lxwhere乙/嶺=the general index of trade in servicess' maybe import index, also maybe export index,工 x、b°工presents passche index for trade barriers of trade in services index

25、passche index presents homometrical factor is identified in reported period. trade barriers are quality indexes, so passche index is computed, andpresents laspeyre index for gaugeable econometric synthetic factor' laspeyre index presents homometrical factor is identified in base period econometr

26、ic synthetic factor is quantity index, so laspeyre index is computed. gb/t4754-2002otablei: national classification of service6f transportation, storage and postg information and communication, computer service and softwareh whole sale and retail1 accommodation and food servicej financial servicek r

27、eal estate activityl rent and business servicem science research, tech no logy service and geological surveyn water, environment and public facility management0 residential service and otherp educationq human health, social security and social welfarer culture, sporting and recreations public manage

28、ment and social organizationt inter national organization2.8 in the index system,could be calculated based on the given data. ismeasurement target of trade in services barrier index.could not be directlycalculated, and yet could be given by transtorming arithmetic average exponential form.2.9 then a

29、ccordi ng to industry classificati on, the in dividual in dex would be measured based on formula 3.(5)transforming formula 5, and we have(6)and we have二工x/。工kx°b°(7)use formula 6 in2.10 for industry i, x()b()presents the total level of trade in services in base period,which is give n data

30、k is the in dividual in dex of syn thetic factor. because the data in report and base periods are given, k could be calculated hence, formula 7 could be calculated without bo, which is trade in services barrier data in base period at last,formula 4 could be transformed,prlx(8)obviously, pb could be

31、given. moreover, it is accurate value not approximate value.3. the explanation of trade in services barrier3.1. based on the above an alysis, the econo metric in dex could calculate trade in services barrier index by conversing synthetic index system. trade in services barrier is a relative value wh

32、en pb is less than 1, it means trade in services barrier in report period is lower than that in base period. it presents the intensity of trade in services barrier is attenuating when pti is equal 1, it means trade in services barrier in report period and that in base period is equivalent. it presen

33、ts the in tensity of trade in services barrier does not change.3.2. although there is no way to calculate the in tensity of trade in services barrier at each time, we could know the development trend through it when measuring the trade in services barrier index.3.3. all data for measuring trade in s

34、ervices barrier index are from regular statistics data. hence, extra work about statistic and research is not required. this method is convenient and low cost. moreover, we could have continuity measurement to form fixed period work.3.4. the further study will be going on in the following, verify sy

35、nthetic factor to judge whether there is mutual influence among factors or lack important in fluential factors .it needs to use other econometric research for referenee to be the basic of theory model for measuring trade in services barrier index. divide service industry. it has two advantages. one

36、is to push the measurement of trade in services barrier index based on industry. the other is to accurately calculate the total trade in services barrier.4. acknowledgements4.1. i sincerely express my gratitude to the leaders and workmates of institute of international business of shanghai institute of foreign trade who support me so much.4.2 when constructing and organizing this essay, i gained the guidance and help from international specialists, professors and workmates. many thanks for their kin

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