Developing Host Countries' FDI Strategy In Service Sectors

As the further development of economic globalization and the continued opening up of international service markets, foreign direct investment (FDI) in service sector has become the most important area of the world FDI field. However, compared with developed countries, the vast developing countries have absorbed most of the foreign investment in the manufacturing field, which will hinder the development of the service sectors in these countries, thus weakening their national competitiveness. In order to seize the good opportunity of the recently accelerating cross-border foreign investment transfer in service sectors, and to minimize the negative impact of the foreign investment, developing host-countries should formulate and implement the right FDI strategy in services urgently.This Article adopted the empirical and the theoretical analyses: First, On the basis of the original theories and researches of FDI, this article has established the ESP (E environment, S system, P policy) Adjustment and Control Strategy:By adjusting its ESP system, which leads to changes of FDI quantity and structure in equilibrium, the host country can achieve its FDI objectives. Second, through the investigation and the analysis of other countries'ESP adjustment policies and measures, we can gain relevant experience and lessons, which will be useful for other host countries to adjust and control their FDI. Finally, in the empirical analysis of our country's reality of absorbing FDI in service sectors, and on applying the theoretical research results and lessons learned above, this article has concluded our country's future service FDI strategy, and given corresponding policy suggestions.