The Research On The Impact Of Doing Business On FDI In Service Industry

With the acceleration of world economic integration,foreign direct investment in services(FDI)has become an important way for countries to develop rapidly in the current trend.The particularity of service industry determines that the system will have an impact on it.This paper focuses on the impact of business environment on FDI in service industry.At present,there are few studies on the impact of business environment on service industry FDI.This paper compares the business environment through the index system of business environment,and studies the impact of each sub-index on service industry FDI through principal factor analysis.Firstly,the literature is sorted out.On the basis of analyzing the general influencing factors of FDI in service industry,the business environment is introduced.It is found that the business environment will affect the decision-making of enterprises,the economic level of countries,and then the inflow of FDI in service industry.Combined with the characteristics of FDI in service industry,this paper systematically analyses the possible influence mechanism of business environment on the scale and quality of FDI in service industry,which serves as the basis for the analysis of this article.Through further analysis,the index system of the World Bank's business environment is selected.The sub-indicators of the index system are:start-up enterprises,construction permits,access to electricity,registered property,credit,protection of minority investors,payment of taxes,cross-border trade,execution of contracts and bankruptcy.Based on this index system,we first compare the business environment convenience level of major regions in the world in the past five years,analyze the characteristics of regions and major countries in the world,and then compare the distance level of China's business environment frontier in 2014-2018,and compare the secondary indicators with the United States,Singapore and Hong Kong to find out the main existing business environment in China.Problem.Secondly,it is a comparative study of FDI in service industry.By collating the relevant data of UNCTAD service industry FDI in 2014-2018,it compares the trend characteristics of FDI in global service industry,and further collates the inflows of FDI in various industries and regions of service industry in the past 10 years by the national statistical yearbook.By comparing the different levels of FDI in service industry in China through charts and charts,it can enhance the service industry FDI in China.The analysis of the level of FDI in the service industry should be based on.Empirical research is based on the established business environment index system to analyze its impact on service industry FDI.Firstly,the comprehensive frontier distance level of the business environment is taken as the explanatory variable,and the OLS model is used to analyze the data of 34 countries from 2013 to 2017.It is found that the business environment plays a significant role in promoting FDI in service industry.Further,through principal factor analysis,the ten indicators of business environment are clustered into three main factors,which are classified as infrastructure and environment factors,operation and risk response factors,and access to credit factors.The results show that infrastructure and environment factors,as well as operation and risk response factors,have a positive impact on FDI inflow in service industry.The last part draws conclusions based on the empirical results and the analysis of the previous part,and puts forward suggestions on how to make better use of FDI in service industry in China from the aspects of reducing barriers,improving government efficiency,improving network convenience,improving legal system and policy transparency.