Research On FDI In Shandong’s Service And The Upgrading Of Industrial Structure

1990years later, the Shandong province takes increasing economic quality, promotingindustrial upgrading and increasing the market competitive power as the main attackdirection of the industrial structure adjustment. To enlarge the third industry, it especiallyneeds to speed up the development of new service industry such as financial, insurance,communication, computer software, tourism and information consulting. In recent years,the focus of foreign direct investment in the world has been transferred into service frommanufacturing, the international investment in the service has become the mainstream offoreign direct investment, and the foreign direct investment can accelerate a region’seconomic development and industrial upgrading. At present, the study about the impact offoreign direct investment in service on industry structure more focused on a country level,less on a district level, the study about the impact of foreign direct investment in service onShandong’s industry structure is even less, therefore, in this context, it is very importantand significant to do a systematic and deep analysis on this issue.This thesis mainly studies on the impact of FDI in service on the industrial structurein Shandong. First, the article introduced relevant literature reviews, both foreign anddomestic, about FDI in service industry and industrial structure。Meanwhile, the article hasdefined “service industry”,“modern service industry”. On this basis, it mainly describesand analyzes the mechanism that FDI in service industry upgrade industrial structure. Then,the article counter the present situation、the problems in Shandong’s industrial structureand the present situation、the problems in the Shandong’s service industry using FDI. Whatfollows is the empirical analysis into its impact on the quantity of labor force in serviceindustry, the output value of service and the industrial structure in Shandong province. Atlast, the article makes suggestions on how to use FDI more rationally and effectively forShandong’s service.