Foreign Direct Investment, Technology Spillovers And Nanjing Services Sector Growth

In the last few years, the relationship between foreign direct investment (FDI) and economic growth has been concerned widely. But there is few analysis about the relationship between FDI and services development, especially concentrating on FDI how to influence Nanjing services. None have we see in papers we searched. Research object of this paper is the city of Nanjing. By empirical research, this paper investigates the status and function of FDI in Nanjing services development, and puts forward the corresponding policy proposals.In this paper, large numbers of data and graphs are used to analyze quantitatively the characteristics of FDI in Nanjing services including the amount, categories, original countries as well as structure of industries. And the technological spillover effect of FDI on Nanjing services was analyzed. This paper constructs an empirical model of Nanjing services total factor productivity and FDI, estimates the alteration of Nanjing services total factor productivity by Malmquist Index based on DEA, a nonparametric method, and then dose the Regression Analysis between FDI and Nanjing services total factor productivity by using the choosing panel date. The outcome reveals that technological spillover of FDI are positive to Nanjing services, which means FDI was good for Nanjing services. At the end, this paper proposes some policy advices about how to use the foreign investment efficiently to promote the development of Nanjing services.