Impact Of Japan's Outward FDI In Service Industry On Its Economic Development

With the rapid development in the globalization of service industry and the opening-up of service market in many countries, service industry has already exceeded the manufacturing industry to be the most important area in FDI and become the impetus to economy integration in today's world. At the same time, the development in service industry has shaped the development mode of other industries, and has a significant impact on economic development.As there is no clear definition and scale about FDI in service industry in academic cycles, and huge diverges in statistics, the research in and aboard on FDI in service industry is little. The further study in theoretical and empirical is still on the way. Against this background, this article tries to analyze the development and impact on its economy of Japan's outward FDI in service industry by theoretical and empirical methodology, then bases on the development situation of China's attraction to Japan's outward FDI in service industry and puts forward some countermeasures to improve this situation.The article starts from introducing the three stages of Japan's outward FDI in service industry. Then, chapter three to five discuss the impact on its economic growth, trade and balance of payment of Japan's outward FDI in service industry respectively. Chapter three states that Japan's outward FDI in service industry has already become the new growing engine of its economy by theoretical and empirical methodology. With the help of gravity model, Chapter four analyzes the relationship between Japan's outward FDI in service industry and trade, and concludes that they are substitution relations. Chapter five finds the fact that Japan's outward FDI in service industry is one of sources of its capital account deficit, but its impact on current account is not clear. At last, the article bases on the development situation of China's attraction to Japan's outward FDI in service industry and puts forward some countermeasures to improve this situation; meanwhile, it sums up and points out some aspects that need to be further studied.