Research On The Impact Of Service FDI On Service Export

With the development of the global economy and technology, the whole world adjusts industrial structure quickly, which contributes to the economic growth and employment rising. Now, value-added of services account for 70% of total global value-added. Service has become the center of the global economy. Driven by the development of service industry, world trade in services also began to flourish. Meanwhile, the major global flows of FDI have shifted towards services. In China, trade in services and the development of services FDI has followed the pace of development of the world trade. During 2014, China’s service industry to attract foreign capital totaled $ 74.096 billion, accounting for 61.90 percent of China’s total foreign investment in the same period, while trade in services exports reached $ 5,016,700,000,000. Foreign Direct Investment(FDI) as a productive factor in the redistribution of the world, economic development have an important impact on this paper by using qualitative and quantitative method of combining the services sector FDI affect China’s service trade exports were studied.In summary, based on the existing research results, this paper present situation of FDI development of service industry and service trade. By analyzing the impact of the mechanism path to find the mechanism of FDI on the export of services, and then use both the empirical models tested relations. Eventually concluded that in the long run, the service sector FDI on development promotes the service trade export. At present, there are still many problems in the introduction of foreign capital. So I give the policy paper to suggest the development of China’s service industry, so as to enhance the competitiveness of China’s service trade, promoting the development of trade in services exports.