Abstract
Purpose This study compares and analyzes the trends in service trade between Korea and China by analyzing the RCA index, SRCA index, and TSI index. Design/Methodology/Approach For this analysis using the UN Comtrade DB, the service trade in 11 sectors was analyzed using Extended Balance of Payments Services (EBOPS) 2002 between Korea and China for 8 years (2010 to 2018). The comparative advantage was measured by calculating the present comparative advantage index (RCA), the revealed symmetric comparative advantage (SRCA), and the trade specialization index (TSI). Then, the level of competition was measured by analyzing the export competition (ESI) of the service sectors between Korea and China. Findings In Korea and China, the transportation and construction sectors, which are highly related to manufacturing, have relatively high international competitiveness; however, international competitiveness is weakening in other service trade sectors. Research Implications In the case of royalties and license fees, if international competitiveness is weakened, as product exports increase, the size of the service deficit in that sector will inevitably increase. Accordingly, it should be human investment related to infrastructure construction and human education, such as royalties and license fees.
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