Study On The Effect Of Inflow Of FDI In Services On China's Economic Growth

With the spreading of the globalization of economy,the service economy has become the focus of international economic competition. It is very necessary and urgent to develop service industry. And the utilization of foreign direct investment is essential for develop service industry.In 21st century ,the FDI in service has changed a lot. Traditional services develop slowly and modern services develop quickly. Faced with changed FDI in service,China should act actively to formulate industry strategies to open its related service industries.The thesis consists of five chapters. The Introduction puts forward the research subject, the new ideas and shortcomings of the thesis as well as framework of it. The second chapter describes the theories about the relationship between FDI in services and GDP and literature summary. The third chapter reviews the current situation and trend about global FDI in services and analyzes the effect of FDI in services on the specific service . In the fourth chapter, an empirical test is done on the causality between FDI in service and economic growth in China and the conclusion is that FDI in service is the reason for economic growth, however, the latter is not the reason for the former. Since above content provide the theoretical and empirical foundation for the opening of service industry to the outside world, so which service industries should China open? The following indicates the direction for it, which concludes that FDI in real estate contributes most to the GDP. Therefore, in the fifth chapter ,the thesis provides some suggestions on the strategies of opening the above-mentioned service industries.