FDI Inflows Services Impact On Service Trade Export Competitiveness

Since1980s,the weight of the world economy is moving towards the servicessector,which are growing faster all over the world.With the development of serviceindustry,the proportion of service trade has been increasing rapidly.FDI attaches moreimportance to service industry.According to the statistics by MOFCOM,China’s FDIinflows reached$117.586billion, in2013,with year-on-year growth of5.25percent.Among them,the service FDI inflow into China is$61.45billion,withyear-on-year growth of14.15percent. FDI in service sector exceeded half the totalscale of the FDI for the first time，reached to52.3%.It shows that China’s servicesector is absorbing more and more FDI.This study includes the following contents: First,we define the concept ofFDI,services,service trade,competitiveness of service trade;The second chapter is theanalysis and appraisement of the current situations of the services,service trade andthe services FDI;The third chapter is about China’s international competitiveness oftrade in services,using both revealed indexes and depicting index.Chapter4conductan analysis of service FID inflows’ impact on the competitiveness of serviceexport,including theoretical and empirical study.Finally,we put forward a series ofimportant policy suggestions.Based on the analysis of data from1992to2012, we reach the conclusion that: Inthe long term,there is a co-integration relation between the service FDI inflows andthe competitiveness of service export,but only to a small extent.What is more,it is alsoa indirect function result.In order to increase China’s competitiveness of serviceexport,we should continue strengthening the introduction of FDI.Meanwhile,weshould take a more selective approach,leading FDI to make greater contribution to thetechnological progress in the service industry of China:On one hand,we should workactively to renovate and upgrade our traditional service industries;On the other,weshould encourage the development of new service industries,making the best use ofservice FDI inflow to improve the competitiveness of service exports.