The Decisive Factor In China's Foreign Direct Investment In Services

Foreign direct investment (FDI), it is always a hot topic in the economics research. As a creative resource, FDI consisting in capital, technology and management is a main path to absorb technology. Academic area has made a lot of studies about how to attract FDI. Since China decided to open to the outside 30 years ago, China become one of the most important host countries and have obtain great achievement in attracting FDI, and its future competitive capacity in the international market depends considerably on the development of service industry. It is because only the development of service industry could open up the domestic market, create domestic demand and cope further with the international market. Therefore, China should use well the moment of its WTO entry for the first time open its service industry, raise service industry's overall development level in order to promote the growth of national economy.This thesis is divided into 5 parts:The introduction tells the contents and the significance as well as the research methodology. The second part gives the review of related literature. The third part surveyed the history and current situation of China's inflow FDI in service industry. The fourth part uses the OLS model to demonstrate the different factors in attracting FDI. The last part brings forward the useful proposals concerning the FDI attracting for China.