The Research On The Influence Factors Of FDI Spillover Effect In China's Service Industry

Since 1980's, globalization has become the background of the development of global economy. At the same time, all the countries are adjusting and updating their industrial structures. As the significant engine of the growth of economy, service industry is developing faster and faster, especially the new modern service industry, which follows the transfer of direction of the foreign direct investments. Now service industry is the mainstream of foreign direct investments. For China, service industry is the main orientation of economical restructure. Along with the gradually relaxation of open policy in service industry, the gradually widen of open fields, foreign direct investments in service industry has developed rapidly. Researches have shown that FDI spillover effect will effectively promote the development of relevant industries of host country and the improvement of the overall economy, it will have great reference and practical significance to study the FDI spillover effect deeply, including its mechanism and influencing factors in order to help us attract better foreign direct investments and promote its spillover effect better.Based on the theory and papers, this paper analyzes the general mechanism of FDI spillover effect, as well as it's influencing factors and the interactions. Meantime, it focuses FDI spillover effect on the consideration of characteristics in service industry in the mechanism analysis sector. Then by using empirical analysis methods, this paper tests the existence of FDI spillover effect in service industry from intra-industry perspective and inter-industry perspective. It turns out that there exists the spillover effect in intra-industry and weak effect in inter-industry. Finally, this paper researches the influence factors of service FDI spillover effect from industrial perspective, including the level of human capital, industrial development, industrial openness and industrial technology, etc. The Empirical test of China's services industry panel data from 2004 to 2011 by using Eviews6.0 and Stata12.0.It concludes that labor costs inhibits services FDI spillover effect, industrial development, industrial openness services have a promoting effect in FDI spillover effect, while industrial technology has no significant effect. On the basis of above, this paper divides service industry into capital-intensive, labor-intensive and knowledge- intensive according to certain index and try to study the influence factors respectively and concludes different results. At last, according to the empirical conclusions, it puts forward relevant policy suggestions in order to bring services industry FDI spillovers'superiority into full play in China.