Theoretical And Empirical Study On China’s Service Industry Security In The Open Economy

With the further development of economic globalization, service industry has been constantly promoting its status in national economy, and has become the most important field of international direct investment and industrial transfer. At the same time, as China’s service industry has been gradually opening to the outside world, the infiltration of foreign investment and its control over the field of service industry has been continuously enhanced, which will not only directly threaten some of the service industry’s industrial safety, but also the industrial security of other industries in our country and even the national economy. Therefore, to enhance the competitiveness of China’s service industry and the innovation ability of science and technology, to master the initiative of service industry’s development, as well as to maintain the security of China’s service industry and even the national economy, it is of great significance to research on the industrial safety of China’s service industry under an open economy.By using the reality data and facts of national industrial transfer and service industry’s development in China, the paper respectively analyzed the industrial security of service industry in China theoretically and empirically, which embodies in the following aspects:First, the paper systematically reviewed on related theory and study on service industry’s security. By surveying the development history of research on industrial security theory at home and abroad, we can conclude that the theoretical basis of services industry’s security is composed of industrial protection theory, industrial international competitiveness theory and industrial control theory. When it comes to industrial security of service industry, scholars both here and abroad are mainly doing their research on industrial security of specific industries such as business logistics, finance and communication of cultural information.Second, the paper analyzed the present situation of service industry’s security in China under an open economy, mainly including the following four parts:the background of service industry’s security in China, the positive effects of an open economy on service industry’s security in China, the difficulties China’s service industry now faced with under an open economy and the analysis of its causes. Among them, the first part elaborated on international service industry’s transfer to the developing countries, service trade liberalization and China’s service industry’s opening to the outside world; the second part analyzed in several aspects such as providing fund for service industry’s construction, improving service industry’s efficiency, optimizing the industrial structure and promoting the employment quality of service industry; the third part focused on the problems such as weaker overall strength of China’s service industry, soft power of service industry is under threat, a more obvious trend of foreign investment’s crowding out or controlling, weaker international competitiveness of China’s service industry, and the discrimination which General Agreement on Trade in Services put on the developing countries; the fourth part mainly analyzed the insufficiency of service industry’s self-innovation ability, the lack of high-end service industry, and the restriction of institutional factors.Third, the paper elaborated on the influence mechanism and transmission mechanism of service industry’s security in China from two perspectives, both inside and outside. Among them, the inside part mainly includes the influence of domestic production factor conditions, domestic market demand, industrial policy and industrial competitiveness on service industry’s security while the outside part mainly includes the influence of foreign capital, foreign techniques, foreign products and barriers to international trade in service on services industry’s security.Fourth, the paper comprehensively inspected the industrial security of China’s service industry under an open economy. By applying the analytic hierarchy process (AHP), the paper established an evaluation index system of China’s service industry security in the following four aspects:industrial environment, international competitiveness, external dependency and industrial control power. According to data availability and the corresponding evaluation index range of service industry security, the paper comprehensively evaluated the industrial safety degree of China’s service industry during 1997-2012 by applying the comprehensive evaluation model. Overall, the comprehensive evaluation of China’s service industry safety has been rising from 1997 to 2012, remaining in the basic safe area. However, the safety degree evaluation differs in the following four aspects:Industrial environment score appeared an overall increasing trend, remaining in the basic safe area; Industrial international competitiveness score also kept increasing, however, still remaining in the unsafe area; Industrial external dependency scored higher, remaining in the safe area; Industrial control power score was decreased after the increase, currently remaining in the basic safe area.Fifth, the paper empirically analyzed the industrial security of China’s service industry under an open economy from multiple perspectives. Based on the perspective of service industry’s demand elasticity of import and export, the paper concluded that the export demand elasticity coefficient of China’s service industry passed the significant test at the lower quantities, however, failed at the higher quantities. With the increase of quantities, the demand elasticity of service industry becomes smaller and smaller while the development of service industry becomes safer and safer. Based on the perspective of service industry FDI and technology progress, the paper discovered that service industry FDI plays a positive role in the industrial technology progress at the lower quantities and keeps the industry develop safely while at the higher quantities, service industry FDI has negative effects on China’s technology progress and threatens the security of industry development. Moreover, the paper found that service industry FDI has a crowding-in effect of domestic investment and helps the services industry develop safely. As for different quantities, service industry FDI at the lower quantities has the greatest crowing-in effect of domestic investment while the crowding-in effect becomes the minimum at the higher quantities. As for different regions, service industry FDI has a siginificant crowding-in effect of domestic investment in the eastern areas while it has little siginificant influence in the central and western regions, therefore, service industry FDI mainly has crowding-in effect of domestic investment in the eastern regions in China.Sixth, the paper comparatively analyzed the industrial security pattern of service industry in different countries. By surveying the development of service industry in the developed countries and emerging economies, we can conclude that industrial security of service industry has always been the basis of promoting the development of service industry. When it comes to the maintenance of security service industry safety, these developed countries have accumulated lots of experience which can be reffered to.Finally, the paper put forward several policy suggestions about the maintenance of China’s service industry security under an open economy, including developing modern producer services, perfecting the elements system of China’s service industry safety, optimizing the policy environment for the development of service industry, promoting the international competitiiveness of China’s service enterprises, building a coordination system constituted by several departments to maintain the industrial safety and promoting related laws and regulations system for industrial security of service industry.