Research On The Impact Of FDI In Service Industry On The Productivity Of The Service Industry

With the acceleration of the process of economic globalization.the links between various economies are getting closer.Judging from the total inflow of FDI,despite the global economic vulnerability,the recovery of FDI is at hand.MNCs are already investing more.In terms of FDI inflows,FDI inflows in the service sector continue to increase.In 2010,the inflow of service FDI in China is more than that of manufacturing FDI for the first time.The economic effect brought by FDI in service industry has been integrated into the development of service industry in our country.However,the development level of service industry in our country and developed countries still lags far behind.Even in some developing countries,the level of development of service industry is higher than that in our country.There is still room for development in service industry in our country.Therefore.the impact of service FDI on service industry deserves our consideration.Based on the summary of the existing theory and research,this paper concludes that the FDI in service industry will affect the productivity of China's service industry by affecting technology spillovers,capital and employment.Technology spillover effect refers to the transnational service enterprises,which enter the host country,have a effect on the host country's service industry productivity through four paths.The spillover effect of capital refers to the increase of the capital of the host country through the direct impact mechanism and the indirect impact mechanism,which will promote the development of the host country enterprises.In addition,FDI may squeeze out the domestic capital of the host country.Job spill refers to that the inflow of FDI will effect the number and quality of employment in the host country.By influencing technology spillovers,capital and employment,service industry FDI has an impact on the productivity of Chinese service enterprises.This paper firstly analyzes the development of service industry in our country,and the development of service industry in China still has a large gap in the developed countries.Then it analyzes the present situation of FDI in service industry in our country.and the introduction of FDI in service industry in China is unbalanced in region and industry.After the analysis of the level of total factor productivity in service industry in our country,most services in eastern China's service industry present a tendency of increasing in total factor productivity,and presents downtrend in the central and western regions;Finally,on this basis,using data from 22 provinces and establishing panel regression model of diffirent region,the FDI in producer services and regional service productivity have a positive correlation.First measure regional services and total factor productivity as the dependent variable,the producer services FDI,the producer services FDI introduction model as independent variables,and at the same time control variable is introduced to verify its effect on the total factor productivity in service industry.The empirical results show that the FDI in producer services and the FDI in non-producer services,spillover effect does exist in our country.The quality of workers has a positive effect on the total factor productivity of our service industry.The influence of marketization in our country in the eastern region was significantly positive,and significant negative abnormal in the Midwest,the reason may be due to the private enterprise investment in the central and western regions in our country is insufficient,low efficiency of private.R&d expenditure has a negative impact on total factor productivity in China's service sector,which may be caused by a lack of investment in basic research in our country.Technology gap has a negative impact on service sector productivity.The government spending in the Midwest has a positive effect on total factor productivity in service industry in China.Finally,the paper puts forward the corresponding conclusions and suggestions based on the analysis of the present situation and the empirical results.Suggestions for FDI in productive services and FDI in consumer services are proposed.In addition,we should improve the marketization level of the service industry and develop high-level service industries.