The Research On Relationship Between Foreign Direct Investment And The Development Of The Services On Guangdong

This paper researched the functionary pathway which the foreign direct investment in Service effect the Services growth. Analyze the reason why the Service industry can attract FDI by theory and many different kinds of effects which FDI impact the Services growth. Take Guangdong province as an example, empirically analyze the overall relationship between FDI and services growth and the functionary pathways. According to the empirical result, propose much advice and many measures let the Service industry use FDI well. Theoretical analysis shows the reason why China's Service industry can attract FDI, first from several mainstream international investment theories we research why multinational company invest the Service industry, then from our country's actual conditions, find a series of favorable factors why the Service industry attract FDI. The nature and character of the Service decide the different pathway between the Service and manufacturing. On the basis of theory, this paper analyzed the relationship between Guangdong FDI in Service and the Services growth; There is unitary Granger causality between Guangdong Services growth and FDI; the empirical result on functionary pathway shows that: the technological effects, system effects and the effects of the industrial structure can not impact the Services growth of Guangdong significantly, the others have positive function, effect size followed by trade effects, capital effects, employment effects.