The Empirical Study On Impact Of Foreign Direct Investment In Service To China's Service Economy

In recent years, transnational investment in services continues to grow rapidly, foreign direct investment in the service field in many countries has become the key to improving their competitive position. Since reform and opening, China's services industry foreign direct investment in which is increasing, will become the hot spot to attract foreign direct investment after manufacturing industry. Therefore, we should clarify status of foreign direct investment in services and problems, explore the impact of services FDI on services, give full play to China's economic growth in a variety of beneficial effects, avoid all kinds of negative effects on economy bringing by the services FDI, enhance the international competitiveness of the service industry and promote the sustained growth of China's economy.In this paper, with an object of FDI flow to Chinese services, mainly analyze the impact on our services industry. Firstly, the paper analyzes the present status and structure feature of FDI in services industry in our country from aspects of gross investment, investment structure, investment sources, investment region and so on using the China's statistics information. From the size and growth rate of actual use of FDI in services and the FDI in various industries of services, the paper analyze the status of FDI in services in China and structural characteristics.Basing on analysis structure features of FDI in services, the paper uses co-integration test and Granger causality test to verify the effect of FDI in services on China's services economy and services employment based on the data from the year 1997 to 2009. The conclusions are as follows:FDI in services promotes the increase of Chinese services economy, FDI in services has a negative effect on China's services employment.By using the panel data of China's various services industry and various services GDP from the year 1997 to 2009, the paper analyzes the effects on the various services industry economy by FDI in specific various services industry. The conclusions are as follows:FDI on various services promotes the various services economic growth in some degree. But after joining the WTO, there are differences. FDI in real estate industry has the biggest promotion to the real estate industry followed by the health industry and the wholesale and retail trade, and the smallest promotion is financial industry. Joining WTO has positive effects on transport, storage and post and telecommunications, financial services and education.