The Empirical Analysis Of The Influence Of Central China's FDI On Modern Service Industry

In recent years, FDI has speed up the development of central region's modern service industry while promoting the development of central region's economic growth. However, the effect of FDI on modern service industry is different in terms of every aspect and business, neither does each province make the same use of FDI.. Therefore, the study on the development of FDI & modern service industry has important practical significance to guide the inflow of FDI as well as boost the development of the modern service industry.The study of the relationship between FDI and modern service industry is mainly based on the statistics of the whole nation and every single province from 1993 to 2007 and two empirical measurements—Cointegration analysis and panel data analysis. It has been focused on the effect of FDI to modern service industry as a whole included gdp, employment, technological development and international trade as well as its detailed business included transportation, post, domestic business, tourism, finance, insurance, real-estate industry, technological development, education and health. In the end, corresponding policies have been concluded to use FDI to develop modern service industry wisely and effectively.The present paper is divided into six parts, and the main logic line of the study is literature review, status analysis, empirical analysis on the effect, empirical analysis on every single industry, and countermeasures.The first chapter mainly talks about the background and significance of the study, summarization of the relative studies of theories and empirical both at home and abroad, content, method and specialty of the study.The second chapter analyzes the main theory about FDI and modern service industry, brings out the difference between modern service industry and the 3rd industry.The third chapter is about the present status of FDI and modern service industry. Comparison has been made to bring out the strength and weakness of the modern service industry in terms of using FDI. The forth chapter is the empirical analysis on the effect of FDI to modern service industry's 4 aspects: gdp, employment, technological development, international trade.The fifth chapter is the empirical analysis on the effect of FDI to modern service industry's 10 single industries: transportation, post, domestic business, tourism, finance, insurance, real-estate industry, technological development, education and health.The last chapter mainly discusses conclusions and policy suggestions, aimed to boost modern service industry by using FDI wisely and effectively.