1 Introduction

The importance of education service trade in the context of globalization and trade liberalization was discussed, emphasizing the significant role of China and Australia in education service trade. The article aims to analyze the impact of China Australia education service trade on China's economic development, including the current situation of education service trade and empirical analysis of its direct impact on the Chinese economy through VAR model.

2 Literature Review

This article provides an overview of education service trade and its impact on the economy, as well as a comparative study of education service trade between China and Australia. The global education service trade is developing rapidly, with an average annual growth rate of 10% in the number of international students, and the United States, the United Kingdom, and Australia occupying the main market share. The growth of education service trade is influenced by economic, policy, and resource factors, such as the UK government increasing the number of international students to increase fiscal revenue, and the abundant educational resources in the US attracting international students. The direct economic benefits of education service trade include increasing university income and GDP. The comparison of education service trade between China and Australia shows that China's competitiveness in education service trade is relatively weak, while Australia's education service trade is mainly based on trade. China's education tends to be public welfare and non-profit, while the market-oriented operation of education in developed countries is more conducive to competition.

Analysis of the Current Situation of Education Service Trade between China and Australia

Detailed analysis of the current situation of education service trade between China and Australia. Since China's accession to the WTO in 2001, the number of students studying abroad and those studying in China has continued to grow. In 2018, China became the largest destination for studying abroad in Asia, while Australia was a major exporter of education services. In the education service trade between China and Australia, the proportion of Chinese students studying in Australia has been increasing year by year, while the proportion of Australian students studying in China has remained stable at 1% -2%. Chinese universities actively hire foreign teachers, while Australia has attracted a large number of foreign educational talents with its multicultural policies and high-quality social welfare. Sino foreign cooperative education has become an important way for China's education service business to exist, and Australian universities are also actively engaging in overseas cooperative education with other countries. The total number of cooperative education projects between China and Australia is 162. In terms of cross-border delivery, the development of distance education in China is relatively slow, but with the advancement of information technology, there is significant room for improvement in the future. Distance education in Australia is developing rapidly, with a large scale of education, flexible forms, and strong policy support, and has enormous potential for development.

The trade effects of China Australia education service trade on the Chinese economy

By establishing VAR models and vector error correction models, the trade effects of China Australia education service trade on China's economic growth were analyzed. The study selected data from 1999 to 2018, using the number of Chinese students studying in Australia and the number of Australian students studying in China as representative variables for education service trade, and reflecting the economic situation with China's actual GDP. Through ADF unit root test and Johansen cointegration test, it was confirmed that there is a long-term equilibrium relationship between variables. The VAR model results show that the import of education service trade between China and Australia has a positive promoting effect on China's GDP growth, while the export has a negative inhibitory effect. Granger causality test shows that the import of education service trade is the reason for China's GDP growth, while GDP growth is the reason for the export of education service trade. The impulse response analysis and variance decomposition further revealed that the positive impact of education service trade imports on the Chinese economy is significant, while the impact of exports is relatively small. These findings provide empirical support for understanding the economic effects of China Australia education service trade.

5 Conclusion and Policy Suggestions

The development of education service trade between China and Australia is rapid, with a trade deficit in education services in China and a trade surplus in education services in Australia. The main form of education service trade between China and Australia is overseas consumption, and China is in a deficit state. The import of education service trade between China and Australia has a positive impact on China's economic growth, while the impact on exports is not significant. It is suggested to strengthen the internationalization of education services, encourage educational exchanges, cultivate international talents, increase investment in education funds, improve the return rate of overseas talents, and promote the accumulation of human capital and technological development.