A Study On Utilization Of Foreign Direct Investment Of Chinese Producer Services

With the acceleration of globalization and the deepening of the international division of labor, international industrial transfer continuously presents demonstrates new features, the service sector has become the focus of the world's major developed economies. Typical knowledge-intensive producer services industry as an important part of the services sector has become the fastest section in the growth of developed countries'Service Industry. Besides, it is taking a more and more significant role. Although the development of our services compared to the first and second industry has increased rapidly, but still far behind the level of developed countries. The level of development of producer services is more behind. Therefore, the study of utilization of foreign capital to accelerate development of producer services has important theoretical and practical significance.This article mainly studies on China's producer services utilizing FDI. First of all, it makes the definition of the producer services and reviews the related theory of producer services. On this basis, the paper further introduces the development status of the producer services use of Foreign Direct Investment. Following analyzes the basic theory and economic effects of the FDI in producer services in order to provide theoretical support for empirical research. And then, an empirical analysis of the FDI in producer service is made from three aspects: First, co-integration test and Granger test are carried out on the statistical data from 1993 to 2008 to make an empirical study on relationship between China's producer services use of FDI and the services growth. Second, how the FDI in producer services to promote the development of the services is further analyzed by capital effect, technology effect, trade effect, employment effect and institution effect as explanatory variable. Third, the impact of FDI of different producer services industries on its economic growth is examined by using panel data model. Finally, on the basis of the above theoretical and empirical studies, some policy recommendations about the producer services introducing into utilizing FDI are put forward.