A Study On The Effects Of FDI In Service Industry

With the development of economy, service industry has become the dominant force in the global economy. As early as in2004, the United Nations published in the journal of world investment report explicitly pointing out the current service industry has replaced the manufacturing industry to become the mainstream in the FDI structure. At present, the multinational corporation FDI in service industry accounted for more than half of the world investment both in the stock and flow of it.After the reform and opening up, China’s absorption of FDI scale expands unceasingly, the FDI to our country also made important contributions to economic development. After entering the21st century, the rapid growth of economy and increasingly open investment environment to make our country a further promote foreign investment in the host country’s international status, the massive influx of FDI in our country, makes our country to be one of the most populous country in the world. Since the90s, China has been one of the most important country in attracting foreign direct investment and it has produced extensive and profound influence on our economy.With the Sustainable development of the economy and service industry playing a more important role, this paper analyzes the absorption of service industry FDI and points out the circumstances and the development of service industry, then it analyzes the profound influence of the entire national economy, using quantitative methods, It discussed the effects of FDI inflows to the leading role of the economy in our country, after the quantitative conclusions,the contents of the next two chapters in this paper, It discussed the effect of FDI inflows on our country economy trade in detail, It may produce specific effects on the trade environment and the employment, including China’s FDI inflows of service trade import, export and the influence of trade structure, are discussed in detail in terms of impact on employment of foreign capital that flows in the employment quantity, quality, and the impact of employment structure.In the whole process of analysis, this paper pays attention to analysis services industry segment after the specific reaction degree and the change trend of FDI.Based on the analysis of the services FDI inflows on trade in services, employment, and the growth of service industry, the specific impact, as a basis in the last a content has made the summary, and puts forward some policy Suggestions on the government to attract FDI inflows, It has an important and practical significance.The innovation of this article is mainly manifested in the following aspects:Firstly, During the process of qualitative discussion, this paper pays attention to the inflows of FDI in service industry more specifically. When discussing the influence of services FDI inflows on the trade structure, this article through to the analysis of import and export data after services industry segment, advising that China’s service trade import and export structure is gradually optimized, however, this article believed that China’s trade in services import structure optimization speed is behind the export trade structure optimization.In discussing China’s service industry FDI effect on employment structure, this paper argues that the service FDI upgrading the industrial structure, thus promoting the employment structure.Secondly, based on the quantitative analysis of the process,the service sector data used the actual use of FDI, this is more trustworthy and persuasive than those articles using the contract amount of FDI.Deficiencies mainly has the following points, first of all, due to the lag of data statistics, the author searched a large amount of statistical data, the final selection of data are mainly from China statistical yearbook data, China’s ministry of commerce and state administration of foreign exchange such as credibility stronger data.But due to the different data source, the statistical caliber inconsistent data sometimes used any of the minute differences.Second, because of the effect of FDI inflows to the host country economy is very extensive, but limited to the alphanumeric code, so the qualitative discussion of FDI inflows the specific influence to the economy, did not do the full impact on every aspect, such as the technological spillover effect and capital effect of FDI inflows specific impact of the path, as well as services FDI inflows to technological progress, the influence of the industrial structure upgrade, this paper make a detailed discussion, these aspects of content remains to be further research.