Study On FDI In Service Industry For Upgrading Industries Structure In Zhejiang Province

Service industry, as an important part of national economic activities, plays an irreplaceable role in economic development. Reviewing the economic developments around the world, what we can learn from numerous cases is that Foreign Direct Investment(FDI) can promote the development of service industry. With reform and opening up expanding, China, as a developing country, has been attracting more and more FDI, which has profound influence on economic development. Comparing with other inland provinces, Zhejiang province has superior natural advantages as one of the coastal provinces in China. While developing all industries, It attaches much importance to upgrading industrial structure, optimizing economic investment environment. As a result, the economy in Zhejiang is increasingly vitalized. With the rapid economic development, it is quite significant for Zhejiang province to introduce FDI to develop service industry and upgrade industrial structure. By means of utilizing FDI in service industry, the shortfall in funding in emerging service industries such as finance, information inquiry, insurance and so on can be made up, furthermore, technological and managerial developments can also be greatly promoted. However, for the reasons that the regional industrial structure upgrading has become a big concern in economic development and studies on it from the perspective of FDI in service industry are relatively rare at present, this paper will study in-depth on it, which has great theoretical and practical significance.To begin with, this thesis will make a literature review on FDI in service industry and industries structure upgrading, and present the mechanism of FDI for upgrading industries structure. Then the current situations of the utilization of FDI in service industry and the industries structure of Zhejiang Province will be expounded. Through combing the two aspects, the author will make a comprehensive analysis on the present situations and difficulties of their developments. Finally, some suggestions will be put forward on how to make full use of FDI in service industry for the purpose of upgrading industries structure through empirical analysis on the influence of FDI in service industry has on industries structure in Zhejiang Province.