| Abstract | China's service export scale and industry structure present rapid expansion and favorable development situation in the past decade, then, what are their theoretical mechanisms? This paper puts forward new interpretation dimension for constructing new comparative advantages in the context of service globalization, which is called "home market effect". This paper proves the existence of "home market effect" through the construction of model theoretically, puts forward a test model that fuses "home market effect" and comparative advantage, and has also carried on the empirical research on home market effect of regional service trade liberalization. This paper uses quantity method to measure the degree of trade liberalization in service sectors about Chinese mainland for Hong Kong, China under CEPA; then, it uses idiosyncratic demand and gravity model to examine the home market effect of service export in Chinese mainland. The result shows that home market effect exists in Chinese mainland service export to both the world and Hong Kong. The role of home market effect in promoting service export is stronger than comparative advantage, and the home market effect of producer services is greater than the consumer services. Service trade liberalization has obvious effect on home market effect, and trade liberalization in different department has different home market effect. Based on the confirmation of home market effect, this paper provides a new train of thought for China's service trade strategy, which has important policy implications for speeding up the implementation of regional service trade liberalization strategy, deepening the market reform of services sector, and promoting the structural adjustment of service industry and service trade. |