The Research On The Determinants Of FDI In Producer Service Industry Of Eastern Region

With the rise of service economy, producer service industry which is characterized by knowledge and technology intensive has developed rapidly. Since the 1970s, producer service industry has become the fastest growing sector in developed countries. Now it becomes the focus of foreign direct investment. Besides it is taking a more and more significant role in economic growth. But in China producer service industry is lagged behind and the ratio of producer service FDI to the whole FDI is very low. Under this background, it is meaningful on practical aspect to research the determinants of producer service.FDI of producer service in China mainly concentrates in the eastern region, so this paper's object is the determinants of producer service FDI in eastern region. Firstly, analyze the determinants of FDI attracted to producer service industry qualitatively. Base on previous research, considering the characteristics of producer service industry, the author summarizes four factors: industry related factor, human resources, information technology and agglomeration factor. Through comparison eastern region with central region, it is found that eastern region have advantages in the four factors which is beneficial for it to attract FDI to producer service. Secondly, take demonstration analysis on eastern region's producer service FDI and make a regression. The result shows that, industry related factor, information technology and agglomeration factor are important factors which have positive effect on FDI in producer service. At the same time, human resources have no relationship with FDI in producer service. Finally, base on theories and demonstrations, we give some useful suggestions about eastern region's producer service FDI.