Research On The Influence Of FDI In Producer Services On China's Industrial Structure

As the largest developing country of the world, the economic development in China is facing the dual pressures of both home and abroad. In this situation, China can achieve sustained and sound economic development only through upgrading and optimizing the industrial structure. FDI in producer services is an important component of FDI in services. Thanks to the characteristics of knowledge-intensive, FDI in producer services have an important effect on optimizing the industrial structure. Therefore, the study on the relationship between FDI in producer services and the industrial structure of China and how to take the advantage of the FDI in producer services in a reasonable way has important practical significance to optimize the industrial structure of China.The present paper selects the influence of FDI in producer services on China's industrial structure as the research direction. The paper first discusses the applicability of the traditional theory to the FDI in producer services on the basis of the industrial structure theory in the open economy and the FDI theory. Then, it further discusses the theoretic foundation of the influence of FDI in producer services on the industrial structure combined with the characteristics of FDI in producer services. On the basis of all these research, the paper analyses the path and the mechanism by which the FDI in producer services affect China's industrial structure. In the research, the paper concludes the current status of the FDI in producer services and the industrial structure of China, then point out the development trends and problems. On this basis, the paper utilizes empirical analysis to discuss the impact of the FDI in producer services on the China's industrial structure and on the development of China's industry and services industries. The paper also uses the empirical analysis to analyses the effect of the FDI in producer services on the structure of the service industry of China. Finally, the paper demonstrates some policy suggestions on how to take the advantage of the FDI in producer services in a reasonable way to optimize the industrial structure.