Research About The Impact Of FDI Towards The Development Of PPRD Service Industry

With the gradual development of the world economy, human society is from the industrial economy to the service the economic society and service industry has become one of the world’s fastest growing industries; no matter from industrial output value, technology innovation, employment or from international service trade perspective, the social status of service industry are increasing.With China’s accession to the WTO process step by step, improve the openness of the service sector, foreign direct investment has continued to see substantial growth trend, the impact of FDI on service industry has become the hot issue of domestic academic discussion.Pan-Pearl River Delta Economic Cooperation Zone was officially launched in June2004, has become an international brand of regional cooperation, the region has a unique service industry resources, has great appeal for FDI inflows.The key of the thesis is the impact of FDI inflows on the Pan-Pearl River Delta economic growth. Firstly, reviews the theory of foreign investment and service sector growth theory literature; reviews the establishment of the Pan-Pearl River Delta Economic Cooperation Zone and describes the status of regional economic growth and FDI inflows. Secondly, the paper analyzes the impact of FDI inflows on the Pan-Pearl River Delta development of service industry. Analyzed from three aspects of the capital effect, technical effect, the employment effects of FDI on the impact of service sector growth mechanism. Then analysis of FDI inflows to the impact to the Pan-Pearl River Delta. Thirdly, establish the panel data model of the Pan-Pearl River Delta and. The data includes FDI inflows, the tertiary industry, investment in fixed assets, R&D investment employment in the tertiary industry which are selected from2000to2010. Then the paper analysis of the impact of FDI on service sector growth in Pan-Pearl River Delta from the capital, technology, employment used EVIEWS6.0. Empirical the conclusion:FDI inflows has the positive effect to the output value of tertiary industry, investment in fixed assets, R&D investment, the tertiary industry employment. From the cross-section point to see, the services industry of the less developed provinces has a higher efficient of FDI inflows.The conclusion also reflects the following issues: FDI into the structure is irrational; FDI technology spillover effect is still weak. Finally, according to the previous combination of qualitative and quantitative analysis, combined with the status quo of the Pan-Pearl River Delta regional cooperation, to propose the better countermeasures to use the FDI and make it improve the PPRD services industry.