Research On The Impact Of Two-way Direct Investment On Producer Services In China

Since the 21 st century,the development trend of the global economic structure has gradually tended to be dominated by the service economy.In particular,the producer services industry has played an important role in promoting the upgrading of manufacturing industries.At present,China's producer service industry has developed rapidly,but it is still lagging behind the developed countries.Therefore,it is of great significance to study the issue of upgrading the producer services industry.In researching the producer service industry,most scholars are committed to conducting analysis solely from the perspective of foreign direct investment or outward foreign direct investment,ignoring the promoting role of coordinated development of two-way direct investment.Therefore,this article takes bidirectional direct investment as an entry point to study the impact of its comprehensive advantages on producer services.Based on provincial panel data of 30 provinces(excluding Tibet)in 2005-2014,foreign direct investment and outward foreign direct investment were selected as the core explanatory variables,and the fixed effect model was used to empirically study the impact on producer services.This paper first analyzes theoretically the impact mechanism of two-way direct investment on producer services.Among them,FDI affects the development of producer services through demonstration-mimicry,correlation,competition,and talent flow effects.First,FDI companies set an example for local companies.Domestic companies learn to imitate new technologies and improve their own development.-Imitation effect.Second,through FDI into the host country's industrial chain,a direct technological spillover is achieved through the correlation effect.Thirdly,the participation of FDI in the international market can force companies to increase their ability to innovate and obtain competitive effects.Fourth,through the flow of human resources between industries,the technology diffusion can be effectively formed through the talent flow effect.OFDI influences the development of producer services through technology absorption effects,industrial agglomeration effects,and human capital effects.Firstly,OFDI companies set up subsidiaries abroad and absorb foreign advanced technologies to create reverse technology spillovers.Second,through OFDI,it is close to the gathering place of foreign technology to form an industrial agglomeration effect,affecting the development of producer services.Third,through the training of employees in foreign subsidiaries and hiring of high-quality foreign talents to form human capital effects,it is possible to effectively create a reverse technology spillover.Under the premise of the mechanism of the impact of two-way direct investment on producer services,this paper conducts an empirical analysis of the national and regional data.The results show that:(1)At the national level,OFDI has a significant role in promoting producer services;FDI initially had no significant effect on producer services,but after joining the interaction between FDI and human capital,There is a significant positive correlation between foreign direct investment and producer services.(2)At the regional level,in the statistical analysis,due to the small gap between the output value and the development speed of the producer services between the central and western regions,the empirical analysis focused on the study of differentiation in the eastern region and the central and western regions.The study found that there is a difference in the focus of the development of producer services between the eastern and central western regions.Among them,the eastern region focuses on the development of total factor productivity,foreign direct investment,R&D investment,and marketization;the central and western regions focus on the optimization and upgrading of outward foreign direct investment,human capital,property rights protection,and marketization.Therefore,in the process of promoting the upgrading of producer services,it is necessary to pay attention to the overall development at the national level as well as the differentiation of regional development.