Research On The Determinants Of FDI In Shanghai's Service Industry

Nowadays, service has become the main stream of global foreign direct investment. As the opening of China's service industry up nowadays, FDI utilization in Shanghai's service industry is also developing fast. But compared with developed countries, there is still a large gap in FDI utilization in service industry. SO it is important to do research on the factors that influence FDI utilization in Shanghai's service industry in order to attract more and better FDI and improve the economic effect. Directed by relevant theories on FDI in service, after the analysis of status quo of FDI utilization in Shanghai's service industry, the thesis carries out qualitative and empirical analysis to study the determinants of FDI in Shanghai's service industry. In the end, the thesis puts forward some advice on FDI utilization in Shanghai's service industry.The thesis consists of five chapters. The first chapter is the theoretical review of FDI in service industry and a literature summary about determinants of FDI in service industry; The second chapter analyzes status quo of FDI utilization in Shanghai's service industry. The third chapter constructs the analytic framework of FDI in service industry, and then carries out qualitative analysis of these determinants in Shanghai; In the forth chapter, Partial Least-Squares Regression is used for empirical analysis of determinants of FDI utilization in Shanghai's service industry. The empirical result indicate that inward GDI in manufacturing, market growth potential, the economic openness degree in service industry are the three most important factors and positive correlated with FDI utilization in Shanghai's service industry; human capital had weakly negative correlation with FDI utilization in Shanghai's service industry; there is strong positive correlation between the other factors and FDI utilization in Shanghai's service industry; Based on the results form the qualitative and empirical analysis, the last chapter gives some countermeasures on how to attract FDI for the service industry.