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Study On How China Utilizes FDI To Accept International Service Industry Transfer

Posted on:2008-04-27Degree:DoctorType:Dissertation
Country:ChinaCandidate:Y J TangFull Text:PDF
GTID:1119360212486154Subject:Finance
Abstract/Summary:PDF Full Text Request
Service is the fastest growing industry in the world in resent years. Foreign direct investment (FDI) has become the main vehicle for the service transferring in different economies. China is one of the countries that have got the greatest FDI inflow. How dose the FDI inflow relate to the growth of the service industry in China? What are the characteristics of area structure and section structure when FDI inflow into Chinese service industry? How can China utilizes FDI well in order to accept the international service transfer ? These questions should be answered soon. And these are main targets of the research .At first, the results of the researchers in china and abroad, and the basic theories are summarized as the basic of the research . The overall situations of FDI inflow in China are described .By setting statistical models, dynamic authentic proof methods have been used to test the relationship between FDI and the growth rate of the service industry in China in different periods. The research has got new result: It confirmed that the reformation of the economic system, the adjustment of policies and improvement of environment can bring about a positive result on accepting international service industry transfer by utilizing FDI, and improving the economic structure upward to a higher degree.Two statistical models are used to study the relationship between FDI inflow and the growth in service industry in different periods. The result of Cointegration Test shows that direct effects to service industry growth rate by FDI is rather small. And especially, manufacture industry as the producer demand for service brings about a negative effect to service industry growth. Since in the researched 27 years, FDI entered mainly into manufacture industry, so that we can say that FDI crowed out the growth of service industry indirectly in China in the long-run. In 1994, China singed the GAST . The Cross Section Coefficients Test is used to study what happened in 10 years after 1995. The testing result shows that although the direct effect is still small , there is an improvement on promoting service industry by manufacture industry after 1995,and manufacture industry as the producer demand for service emerges a positive effect on service industry growth. It confirmed the result.Serious industry structure unbalance, area structure unbalance and section structure unbalance are found when researching about FDI in service industry in China. Through the analyses of the area structure and the section structure of FDI flow in the service industry , the results are fund that FDI inflow is one of the reasons that enlarge the gap of economic levels in different areas and cause unbalance of section structure in service industry. Real estate section has got a large proportion of FDI, but finance section got compare smaller proportion. All of the natural, economic environment and the culture conditions are factors that affect FDI's area and section options. Policies and the improvement of the environment can also have the help in adjusting the structures.By a relative systematic analyses, an overall consideration has been made. There will be a technical spillover when FDI flowing into service industry , which can promote the economic structure raised to a higher degree. The government should support whatever relating to the FDI transferring spillover. A new point has been offered that"If FDI can be attracted into service industry , many problems concerning with economic internal and external unbalance in China can be resolved. Furthermore, it is necessary to make a strategy and have some deeply reforms when utilizing FDI to accept international service industry transferring.There are some creation points on the researching issues option, the visual angle , the research method and the conclusion. The result of the research will serve as the reference on performing the eleventh Five-year-plan., and it has to a certain degree theoretical and practical significance.
Keywords/Search Tags:Foreign Direct Investment (FDI), Service Industry, Area Structure, Section Structure, International Industry Transfer
PDF Full Text Request
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