| With the development of technology and elevation of industrial structure, service industry plays a more and more important role in economic development of each country. Especially since 1990s, the liberalization pace of global trade in services has accelerated remarkably, the focus of multinational investment shifts from manufacturing industry to service industry rapidly.As one of the most important economies after World War II, United States has a leading status worldwide no matter in general economic strength or foreign trade level. Especially after 1990s United States has got a rapid increase in its service industry as well as its foreign direct investment and trade in services, which contributes a lot for the economic development of United States. Therefore the development of foreign direct investment and trade in services of United States provides an example for the economic development of other countries.On the base of a comprehensive introduction of the correlation between international trade and foreign direct investment, this paper establishes a general-equilibrium econometric model by means of Keysian absorption method, and discusses the correlation between trade and foreign direct investment in service industry of the United States in 1990s. Further I take the whole FDI into consideration basing on the selection of variable in this model. The main conclusion of this paper is mutual promoting influence of trade and foreign direct investment in services.The core content of this paper is the empirical analysis about the correlation between trade and foreign direct investment in services. Making use of Keysian absorption method to establish a general equilibrium model, this paper takes further consideration of each variable that has an influence on the correlation between foreign direct investment and trade in services, which is also the innovation of this paper. |
