The Research On The Influence Of FDI On China’s Trade In Service

Expand our horizons to include the whole world, the development mode of inwhich services as the main driving force has basically formed in the world today.Industrial structure is gradually developing toward the service industry, and thedeveloping degree of services industry has become an important indicator to measure acountry’s industry level whether developed or not, and a "service-oriented "economicenvironment has come into being in the whole world. All along of the development ofthe service sector, the rapid progress of trade in services is also remarkable. Servicetrade has become an important focus of all countries to conduct economic wrestlingcompetition.Taking a broad view into the domestic, reform and opening up30years, Chinahas achieved a rapid economic development for thirty years since the reform andopening up. Not only service industry but also trade in service has made significantachievements. Based on its advantages, such as environmental protection, highvalue-added, trade in services has being the new economic growth point for most ofdeveloped countries. Therefore, China is ought to develop the service industryvigorously to promote and facilitate the development of trade in services, and to fulfillthe transition of foreign trade growth mode, to achieve the transition from large tradingcountry to strong trading country. But because of some disadvantages, including latestarting time and low starting point, so many problems and obstacles emerge during thedevelopment process of China’s service trade.The amount of FDI injecting into china is increasing along of the opening up andthe improvement of domestic market environment. Now China has been the world’ssuperpower to introduce foreign direct investment. The foreign direct investmentinjected into China plays an essential contribution to the Chinese economic takeoff,however, foreign direct investment is whether or not doing good to improve thecompetitiveness of China’s service trade has is a question which is worth pondering. Accompanied by the multiple growth of foreign direct investment, but the developmentpace of China’s service trade is not obvious. Therefore, the study of how to make useof foreign direct investment effectively to promote the China’s service tradecompetitiveness has important practical significance.Under this economic context, summarize the relevant research literature ofpredecessors, and learn their effective research methods, and finally find potentialresearch gaps. Based on relevant academic theories and definitions to conductqualitative and quantitative research, and finally make relevant policyrecommendations reasonably and unbiased promote the competitiveness of China’sservice trade effectively. In this paper, there are five parts as followed:Part I: Introduction. This section first describes the background and significanceof this paper. Then sort out and classify the relevant, and learn the research methodsand theory of previous scholars, and introduce innovation point and a breakthrough ofthis paper. Finally, based the content need to study, select the appropriate researchmethods and ideas.Part II: Theoretical basis. Before conducting the qualitative and quantitativeanalysis, this section describes the theoretical basis of this paper, including theoriesof foreign direct investment and theories of the relations between international tradeand foreign direct investment, and finally to define the definition of services and tradein services, so as to make this article more compacted on a scientific basis.Part III: Effects Analysis. This section is mainly to analysis the role of foreigndirect investment playing in China’s service trade. Before the effect analysis, introducethe history of the foreign direct investment flowing into China, China’s industrialforeign direct investment and China’s service trade, and on the basis of the aboveanalysis to study the impact and then to identify the present problems of this field.Part IV: Empirical test. On the basis of qualitative analysis, this part is planned toconduct empirical part, including two parts. The first part is to make Granger causalitytest by using relevant data of total FDI and China’s service trade amount; Second partis to make correlation regression analysis by using relevant data of service industryFDI. Part V: Conclusion and Policy. Based on the analysis of the above articles, thispart is to propose related policy recommendations on the basis of study results tohigh the competitiveness of trade in services in China by using FDI effectively.