Research On The Impact Of FDI On The Upgrading Of The Service Industry In Shandong Province

With the globalization of the economy,the economies of all countries in the world are developing increasingly closely.Since the reform and opening up,China has gradually opened its doors to the world,and international trade become increasingly frequent.In the process of accelerating the adjustment of industrial structure and accelerating the transformation of economic development mode,Shandong Province realized that the service industry has gradually increased its share in the industrial structure and played a more important role in economic development.In this process,FDI has played a greater role in the upgrading of the service industry.Therefore,Shandong Province adopted a series of positive measures to continuously introduce foreign capital to promote the upgrading of the service industry,which not only promoted the competitiveness of related industries,but also maked Shandong Province industrial structure more reasonable,the economic development rapidly,people's living standards improving.As a province with great economic and human resources in China,Shandong Province has achieved certain breakthrough results in terms of foreign capital introduction.The specific performance is that the scale of FDI is expanded,the use of FDI is diversified,the scale and quality of the service industry are continuously improved,the development speed is accelerated,the industrial structure is continuously optimized and upgraded,the number of employed people in the service industry has increased significantly,and the service industry has gathered significantly.However,problems have also emerged in the process of introducing and utilizing foreign capital,such as the irrational internal structure,the relatively backward development,the uneven development between regions,and the uneven investment in service industries.This paper discusses the impact of FDI on the industrial upgrading of service industry of Shandong Province in view of the achievements and problems and the corresponding policy recommendations.First of all,this paper introduces the related concepts and development background of foreign direct investment and service industry,and systematically analyzes the development status of service industry in Shandong Province and the utilization of FDI in service industry.Secondly,the mechanism of FDI's role in service industry upgrading is summarized through the theoretical analysis of the six major effects of human filling effect,income demand effect,technology spillover effect,capital filling effect,competition and demonstration effect,and industrial correlation effect.In the basic of relevant scholars' studies in the relevant aspects,this paper selected appropriate index variables according to the relevant data of Shandong Province,and then used the panel data of 17 prefecture-level cities to empirically analyze the impact of FDI on the service industry upgrading through the mechanism of action.It shows that the capital filling effect has more obvious impact on the service industry upgrading,the human filling effect second,and the technology spillover effect the least.The income demand effect may not be significant in the empirical results due to the limited data.Finally,based on the theoretical and empirical analysis,this paper makes a summary of the problems in the process of using FDI in Shandong Province and the mechanism of FDI to promote the industrial upgrading of service industry,and puts forward targeted suggestions:accelerate the transformation of government functions,improve the formulation of laws and regulations,create a fair and competitive market environment;rationally and effectively utilize foreign capital,improve the actual use rate of foreign investment in the service industry;continuously increase scientific and technological innovation,and play the leading role of technological innovation in the upgrading of service industry;improve the average income of residents,promote the upgrading of service industry;strengthen the cultivation of talents,improve the level of human capital,promote the upgrading of service industry;vigorously develop advanced industries to pull economic development;and tap into the cultural potential of Shandong,take the road of development of modern service industry characteristics;rationally adjust the structure of foreign investment,narrow the investment gap between regions,and strengthen the guidance between service industries.