Study Of The Industrial Structure Effect Of The Service Sector Fdi

As the rapid development of economic globalization today, international specialization has evolved deeply, which shows that mature industries continued to be transferred from developed countries to developing countries. Since the 1990s, service industry has become a hot issue of international industry transfer. Being one of the main tools of international industry transfer, the scale of FDI in service industry is increasingly augmenting. Because of opening of service industry, this industry is becoming so important investing area that FDI in it has surpassed that in manufacture industry. Manufacture industry has always been the main objective that analyzed by the-current cross-border FDI theories and effect theories on industry structure. However, considering untradable features of most service and the difference of FDI between service industry and manufacture industry, these theories can not apply to FDI in service industry completely. Being one member of WTO, FDI in service industry will improve the whole service industry in China and optimize the industry structure as well as threaten our infant service industry. It is a realistic issue to draw lessons from FDI in manufacture industry to attract FDI investing to service industry effectively and further promote industry structure optimized.Beginning with the characteristics and the nature of FDI in service industry, based on international FDI theories about host countries' industry evolution and related research, this paper distinguishes the difference between service industry and manufacture industry and deeply analyzes the industry structure effect of FDI in service industry and its limiting factors. Then more attention is paid to FDI's structure optimization effect on China's service industry and suggestion on attracting FDI to China's service industry is given out.