Research On The Factors Of FDI In Chinese Producer Services

Since the 1960s, many developed countries marched into the post industrialization time, the manufacturing industry and service industry blend together, formed the industrial structure from "focusing on producing" to "serving". The producer services industry became one inevitable trend in service economic development day by day. It is a non-end-consumer service. In theory "producer services" means the intermediate inputs. It can be used for further production of goods and services and aims at reducing production costs and increasing production efficiency, improve the degreee specialization of business. However, China's the producer services' development is still lagged the present.According to the United Nations Multinational Corporation Center Statistics, the global producer services' investment is increasing 15% every year since 1990s. And now, FDI in producer services has occupied global current capacity 50%. While in 2007, the amount of foreign investment in China's service industry is only 30% to the total foreign investment. Significantly lower than the world average degree (64%), developed countries (71%) and developing countries (49%) degrees. And the ratio of foreign investment in China's producer services is even lower. The competition in China's service industry, especially in China's producer service industry is even lower. The primary reason may be the lower market opening degree and the insufficient global participation.At the same time, the international production services enterprises are becoming more and more interested in China's market. According to the experiences in developed countries, China's producer service industry is facing an explosive opportunity for developing. Therefore, under the global economic background and the financial storm impact, how to grasp the opportunity, make use of favorable conditions and avoid unfavorable conditions, introduce the foreign capital reasonably is the urgent problem in China' producer services' development. So, study on the factors of China's producer services' FDI will contribute to attract investments, adjust industrial structures, optimize resources, as well as accelerate national economy to develop faster and better.With an object of FDI flow to China' producer services, this paper mostly studies its determinants. Firstly, analyze FDI theory, the actuality and the course of development of China' producer services using FDI. Secondly, carry through qualitative analysis in China' producer services" FDI, then find the positive factors and the negative factors. Thirdly, carry through the demonstration analysis on producer services. This paper does a regression on FDI flow to China' producer services with time serial analysis. The result shows that, market potential, government function, location degree, opening market scale , labor force resource and scientific research are the import factors which GNFluence China" producer services' FDI. Finally, base on these theories and demonstrations, under the global economic background and the financial storm impact, we give some useful suggestions about China' producer services" introducing into FDI.