An Empirical Study On Services FDI Impacting The International Competitiveness Of China’s Service Trade

Since1980’s，our country’s FDI scale is more and more big. The investmentindustry gradually shifts from manufacturing to services. But the imbalance ofindustry distribution is still very serious. Manufacturing occupied a large proportionand small proportion of the service industry. With China’s accession to the WTO, theopenness degree of our service market becomes large. More international capital turnsinto our services industry. And the growth trend is strong. The service industrydevelopment impetus our service trade grow by20%a year of rapid developmentspeed. The service trade growth rate is higher than commodity trade growth rate.Even so, China’s service trade has been in deficit state. It’s internationalcompetitiveness is weak, the trend may gradually decreased. At present our countrycomes into the twelve fifth planning and development period. Services industry andservice trade will be the main development object. China has been the largest countrythat attracts FDI amount in the world for many years. So our research of therelationship between services industry and service trade competitiveness has certainguide.First of all, this paper analysis services FDI service trade competitiveness theory.In traditional theory the comparative advantage theory and competitive advantagetheory is applicable to service trade competitiveness. Through the analysis of industrycompetitive advantage theory, we know that the improve of service tradecompetitiveness depends on many factors, such as production factor, domesticdemand conditions, the development level of second and third industry, developmentstrategy of service industry corporation, organization structure and competition,development opportunity of service trade and government policy. Second, this paperanalysis general situation of China’s service industries and services FDI tradecompetitiveness. Then find the relationship between services FDI and service trade.The main part of this paper is to analysis the transmission mechanism of services FDIaffect service trade competitiveness. This paper use the train of thought: servicesFDI---middle variable---service trade competitiveness. In the third part of the paper,we make empirical analysis of between services FDI and service trade analysis. In thelast, we got a conclusion from the above analysis. In consideration of our country’s real fact, this paper bring up three policy proposals to strengthen our services industryattracts foreign investment ability, improve our service trade competitiveness, makeour service trade more reasonable and perfect.