ABSTRACT
This paper intends to test the trade effects of the US producer services investment on the Sino-US bilateral trade, including export effects and import effects, so in the regression, three dependent variables are chosen respectively, which are the volume of the Sino-US trade surplus, the volume of the China exports to the US and the volume of the China imports from the US. Trade flow data is obtained from the United Nations Commodity Trade Statistics Database (Comtrade) from 1993 to 2012. In the independent variables, the US producer services investment flows and stocks in China are mainly the sum of five subsectors investment, including financial, insurance, banking, information, business services, and professional scientific
1 INTRODUCTION
The disintegration of production and the integration of trade have become the symbols of economic globalization, and the factor intensity of the final products and the factor used intensity in the production process also become two different concepts. Under this trade pattern, when China exports goods to the United States (US) and imports services from the US, China will inevitably have goods trade surplus and services trade deficit. At the same time, the US will also have goods trade deficit and services trade surplus. In fact, the Sino-US trade surplus in goods is just a mirroring of the US trade surplus in services with China and the comparative advantage of the US service sectors.
