The Research On Foreign Direct Investment Flowing To Chinese Service Industry

In 21st century, the focus of FDI in the world began to shift to service industry. The large capacity and developmental potential of Chinese services market makes China become one of the countries which have the most attraction to FDI in services. Since entering WTO China has been carrying out the opening of service industry gradually according to the GATS rules, and the continuous FDI flowing into Chinese services has not only brought a new chance to the economic growth and the development of service industry of China, but also brought a challenge and great pressure to them. Based on current FDI theories, the thesis try to find a valid method for the opening and utilizing FDI of Chinese service industry, by researching the Interactive relation between FDI in services and Chinese economic growth, as well as the actuality, economic effects and restricted factors of Chinese services utilizing FDI.The thesis consists of five chapters. The introduction puts forward the background and meaning of the research, as well as the new ideas, shortcomings and framework of the thesis. The first chapter is the theoretical review of servings, service industry, FDI in service industry and service trade. And a literature Summary about FDI in services between China and foreign countries is also mentioned in this chapter. The second chapter describes the applicability of classical FDI theories and service trade theory to FDI in services, afterwards it explains the motivation of FDI flowing to service industries of developing countries. The third chapter analyzes the actuality of Chinese services utilizing FDI from different perspectives in detail. In the fourth chapter, an empirical test is applied and the conclusion is that FDI in Chinese services has a co-integration relationship with economic growth in China, and the FDI in services is the Granger reason for Chinese economic growth, however, the latter is not the reason for the former. Then it analyzes the economic effects and restricted factors of FDI flowing to Chinese service industry. In the fifth chapter, the influences of carrying out GATS rules and the prospect for Chinese services utilizing FDI are discussed in order to provide some countermeasures for the opening and utilizing FDI of Chinese service industry.