A Study Regards To The Influence Of FDI In Services Industry On Services Trade

Today, service industry has already become the largest and the most dynamic part in developed and developing country. Its level of development is an important standard to the modernization level. Relatively developed countries have some advantages in the service industry. To find a broader market and more low cost market, they are constantly engaged in overseas expansion and further establishment of the position of competitive advantage. The service industries in the most developing countries started late and their economic foundation are very weak. They don't have the advantage in international competition. To accelerate the development of service trade, and enhance its international competitiveness, the introduction of foreign capital is an important way to improve service level. So FDI in services has become a bridge connecting developed and developing countries. Many scholars have done a great deal of research on the impact of FDI on trade from the perspective of trade, which considers that there is the relationship of replacement and/or complementation between them, and they formed mature theory. However, the literatures on this issue from the perspective of the service are few. Then what's the relationship between them in the end? For the host and investor countries, whether does FDI on service make different effects on service trade? This paper attempts to find out their relationship from theoretical and empirical aspects.At first, this paper analyzes the motivation to internationalization of the service economy, and distinguishes four types of international trade in services with the concept of GATS, and then studies the dual nature of the GATS as service trade agreements and service investment agreements. Followed by a theoretical analysis, it makes an adaptive analysis on the established international trade theory based on the trade of goods. At the same time, it also describes some theories of the service trade and service investment. Then it turns to empirical analysis. Based on the different statistical standards, it examines the relationship between service trade and FDI in services with the data of China, the United States and India from the three aspects of the BOP statistics, FATS statistics and presence of natural persons'statistics. Finally, according to the results of this study, it puts forward policies and recommendations from domestic and foreign.The innovations lie in this paper as follows: first, it studies the relationship between the both from the statistical classification as a new starting point; secondly, it does the research on the relationship between FDI in services and services import and export trade with China's BOP statistics from the perspective of the host country; thirdly, FATS statistics of the United States, it studies the relationship between FDI in services and services provided by multinational companies from the investor point of view, Fourthly, it studies the relationship between FDI and worker remittances from the perspective of the host country with the data of the presence of natural persons in India.