Study On The Relationship Between FDI Inflow And Development Of China's Service Trade

Referred to the relationship between FDI and international trade, many scholars has made a massive research from the perspective of trade and draw the conclusion that there are alternative or the complementary and formed a series of theory. However, from the Angle of the service to study is less, although there are some scholars made an empirical research on the relationship between the services FDI and service trade, were not elucidated its mechanism and path.The service FDI inflows and service trade has been looked as the objects to study their relationship and its mechanism and produced path. Firstly, elaborated the basis theory on the relationship between FDI and international trade. First expounded international direct investment and international trade relationship between and analysis of foreign direct investment theory and made a definition on the service industry, the service trade. Secondly presented the situation of the use of FDI in the service and service trade and found that they are synchronization. Thirdly, adopted the method of qualitative from the host perspective to analysis the relationships between service FDI and service trade and the production path, and concluded that the service FDI inflows can play the role of promoting and not obvious alternative on the service trade. Fourthly, in order to verify the relationship betweens FDI and service trade, used the econometric methods of cointegration analysis, granger inspection, ECM models. Last but not the lest, based on the analysis of theory and empirical, proposed some solution on how to attract the FDI inflowing to service and develop the service trade.