Research On The International Transfer Of Service Industry And Its Spillover Effects

Since 1990s,with the acceleration of globalization and the international transfer of industry,the world economy is in transition to service-based economy,and as a key indicator of a country's international competitiveness,the service industry has gradually achieved a leading position in the world economy. According to the statistics of World Bank, the added value of service in the world accounting for the proportion of GDP has reached 67 percent on average. And it is more than 80 percent and the proportion of employment in service is also up to 70%-80% in developed countries. But in China the number is only 40.3% in 2005, the added value of service accounting for the proportion of GDP in 2006 decreases 0.5 percentage than that in 2005 and 0.3 percentage in 2007 than that in 2006. How to seize the chance of the international transfer of service industry in the background of the gradually opening up of service industry,to attract the FDI in service,to optimize the structure of China's service sector and to upgrade industrial structure is to be a major theoretical and practical subject.The traditional theoretical studies on industry transfer are based on manufacturing sector and there is great limitation of their explanation for the international transfer of service sector. This paper enriches and develops the traditional theories on transfer of industry combined with the situation of international transfer of service. At the same time,it analyzes the spillover effects of international transfer of service to the host country theoretically and empirically and proposes s??countermeasures being favor to China combined with the situation in China.This paper is divided into six parts:Part one, introduction. In this part, it introduces the background and significance of research, defines the object of research in this paper, summarizes the research progress home and abroad and points out the research methods and innovative points and shortcomings.Part two, analysis of the theory of international industrial transfer. In this part, it analyzes the theory of the reason and way of industrial transfer and points out applicability and shortcoming of traditional theories for service industry.Part three, profile of the international transfer of service industry. In this part, it analyzes systematically the situation related to the international transfer of service from six parts. The first part describes the current status of the international transfer of service industry; The second part analyzes the conditions of rapid development of the international transfer of service industry; The third part analyzes main factors affecting the international transfer of service industry; The fourth part points out the international transfer of service industry has higher requirements compared with the manufacturing industry; The fifth part lists the major countries transferring and taking in service; The sixth part points out the trend of the international transfer of service industry.Part four, the spillover effects of the international transfer of service industry. In this part, it demonstrates the impact from three aspects of host country, home country and the whole world. First of all, it demonstrates the spillover effects of the international transfer of service industry to the host country, including the effects of capital accumulation (including physical capital and human capital), technology spillovers, industrial upgrading and improving employment. Secondly, it demonstrates the spillover effects of the international transfer of service industry to the home country, including the effects of promoting economic growth and trade and improving employment. Finally, it demonstrates the spillover effects of the international transfer of service industry to the whole world, including the effects of promoting industrial division, trade and investment, global market integration and corporate restructuring, the development of economic globalizatio??d further adjustment of the distribution of benefits between the developed and developing countries in international division.Part five, Empirical analysis of the spillover effects of China taking in the international transfer of service industry. In this part, it examines empirically the spillover effects of the international transfer of service industry to the host country using the tools of causality test and regression analysis, combined with the data of Chinese service industry using foreign capital. At the same time, it carries out further analysis of the spillover effects of the international transfer of service industry to the host country combined with the practice of the typical producer service enterprise (Citibank) and consumer services enterprise (McDonald's).Part six, the situation and countermeasures of China's developing of the international transfer of service industry. In this part, it describes the situation of China's developing of the international transfer of service industry and puts forward some countermeasures and proposals of China's development of the international transfer of service industry combined with the analysis above.In this paper, the possible innovations are as follows:1. The existing theories on industrial transfer are based on manufacturing sector. This paper points out the applicability of these theories for service and supplements these theories according to the characteristics of the international transfer of service. Such as: the theory on transfer of labor-intensive industries holds that cost is the most important factor affecting the industrial transfer. The international transfer of service is not only for cost savings, but for providing differentiated products for the global market. So service also transfers outside low-cost countries;"Center– periphery"theory considers that developed countries seize the huge profits at the same time of transferring technology to developing countries, hindering the accumulation of capital in developing countries. The research and development of service multinational enterprises using for hard technology is not too much but they are good at soft technology (mainly the means of modern services and management methods). The goods and production of service is difficult to separate, so all business is realized by servicing the customers. It is hard to separate relatively low skills from the production of the parent company. Thus it is difficult to carry out technological security. The technology transferred by service transnational corporations to overseas subsidiaries is more secure, close to the level??parent company, which can effectively help developing countries to gradually achieve high quality and high standards of service. Therefore, this paper argues that the international transfer of service has a greater spillover effects than that of manufacturing sector.2. Nowadays most of the research is concerned about the spillovers of transfer of industry within the industry, namely occurring in the same industry between foreign enterprises and local enterprises, especially all kinds of formal and informal linkages between foreign companies and local enterprises with relationship of division in the value chain of links. This paper carries out necessary analysis on the spillover effects of industrial transfer among industries.3. This paper puts forward clearly the concept of two-way transfer of service and analyzes comprehensively the inward and outward transfer of service. The former domestic research focuses on the impact of international transfer of service on host countries, namely inward transfer, and the research on the impact of international transfer of service on home countries is still rare. This paper analyzes the spillover effects of the international transfer of service to host and home countries and the world as a whole comprehensively.4. This paper puts forward countermeasures and suggestions for China making full use of the favorable opportunity of the international transfer of service, exerting its own comparative advantage and promoting economic comprehensive, harmonious and sustainable development.This paper analyzes the spillover effects of the international transfer of service as a whole. As a result of the restriction of my ability, as well as information and time, this paper fails to target analyze all sectors of the service sector in the international transfer, to be in later study in depth.