An Empirical Analysis On The Relationship Between FDI Inflow Of China's Service Industry And The Development Of Service Trade

With adjustment of world's economy structure, service industry has become the segment which has the highest speed of increasing, and the main segment to absorb foreign investment. This fast growth has also driven the trade of service to develop with an increasing speed of 20%, much higher than that of trade of goods. And trade of service has become the important segment of international trade.Currently, China has been into a new development state of enhancing social modernization with speed. There couldn't be without a developed and prosperous service industry to realize the modernization. Meanwhile, China has been ranking first as the FDI receiver. Therefore, it is necessary to study the relationship between FDI and service industry development, as it is somehow meaningful to effectively transfer the FDI into the service industry and speed up the developing of service industry and trade of service.The thesis will mainly analyze the relationship between FDI and trade of Chinese service industry from following six aspects:In PartⅠ, it concludes the theories of international service trade, the theories discussing the relation between FDI and international trade, and the theories of transferring of FDI into service industry.In partⅡ, it discusses the current state of world's service trade industry and stated the driving force of international service trade development in four aspects and analyzes six trends of transferring of global FDI into service trade industry.In partⅢ, it studies China's current state of service trade industry. Although since the opening and reform China has achieved a progress in international service trade industry, overall, it has been in the period of developing and has many issues that need to be solved immediately.In partⅣ, it covers the current states and points out the problems in China's service trade absorbing FDI. It introduces a simple descriptive data to cover the changing trend and characteristics of quantity and quality of China's service trade absorbing FDI. In partⅤ, it analyzes positively the relationship between FDI and trade of Chinese service industry from year 1984 to year 2005 by using unit root test, co-integration test, Johansen test and granger causality test.In partⅥ, with China's current states of service trade and problems in absorbing FDI, it lists experiences from developed countries to explain how our nation increase the usage of FDI and enhance the competitiveness in service trade industry.To conclude, although China's service trade and ability of absorbing foreign investment in service trade industry has improved a lot since the opening and reform, there is a big gap comparing with developed countries. China should continuously absorb experiences from developed countries and strive to enhance our nation's international competitiveness and developing level in service trade industry.