Research On The Impact Of Foreign Direct Investment (FDI) In The Producer Service Industry On The Upgrading Of Manufacturing In Jiangsu Province

A series of problems such as the slowdown of world economic growth,the rise of trade protectionism,the bottleneck of domestic resources,and the disappearance of demographic dividends have made Jiangsu's manufacturing industry face enormous challenges,and the transformation and upgrading of manufacturing has become inevitable.The upgrading of the manufacturing industry is inseparable from the support of related industries,especially the producer service industry.At this stage,the development of the production service industry in Jiangsu Province lags behind and cannot meet the needs of manufacturing upgrading.At the same time,with the increase in the openness of the service industry,foreign direct investment(FDI,the same below)has grown rapidly in the service industry,especially in the production service industry,not only bringing related production to the service industry.The elements are to transfer these production factors to the upstream and downstream manufacturing industries through industrial linkages,and promote the transformation and upgrading of the manufacturing industry.The FDI of production services in Jiangsu Province increased from US$ 42.229 million in 2004 to US$ 476.438 million in 2017,and the total amount increased by 10.34 times.What impact does the inflow of FDI in such a productive service industry have on the Jiangsu economy?Upgrade of manufacturing industry in Jiangsu Province?Therefore,exploring the impact of FDI in the production service industry on the upgrading of manufacturing industry in Jiangsu Province has important practical significance for Jiangsu Province to more actively and effectively use the FDI of the production service industry and promote the upgrading of the manufacturing industry.Based on the theory of industrial upgrading and industrial relevance theory,this paper uses literature analysis and empirical analysis to study the impact of FDI on the upgrading of manufacturing industry in Jiangsu Province.Firstly,a descriptive analysis of the development status of FDI and manufacturing in the production service industry in Jiangsu Province is carried out.The study found that the overall scale of FDI in Jiangsu's productive service industry continued to grow,the industry distribution was concentrated,and the regional distribution was uneven.The output value of manufacturing industry in Jiangsu Province showed an overall upward trend,but the growth rate slowed down,while the southern part of Jiangsu Province The level of manufacturing development is significantly higher than that of the Suzhong and North Jiangsu regions.Secondly,the panel data regression model is used to empirically study the impact of FDI in the production service industry on the upgrading of manufacturing industry in Jiangsu Province.The study found that FDI in Jiangsu's productive service industry has a positive impact on the structural upgrading of the manufacturing industry and the improvement of competitiveness.The inflow of FDI in the production service industry has promoted the upgrading of manufacturing industry in Jiangsu Province.The impact of the FDI of the productive service industry in the three regions of South,Suzhong and North Jiangsu on the upgrading of manufacturing industries in their respective regions is different.However,in general,the introduction of FDI in the production service industry has promoted manufacturing in various regions.Upgrade.Finally,based on the research analysis and conclusions,this paper gives the corresponding countermeasures and suggestions:First,optimize resource allocation and expand the FDI technology spillover effect of production service industry;second,improve the external environment of attracting investment and accelerate the development of modern productive service industry;Reduce the industry's entry barriers and guide the FDI industry investment direction;Fourth,adapt to the"globalization" trend and implement a differentiated opening-up strategy;Fifth,optimize the financial environment and serve the real economy;Sixth,focus on regional balanced development,and formulate investment plans and policy according to local conditions.