Service Sector Foreign Direct Investment Location Factors

Recently, the center of world economy turned to service industries. It was same to FDI. Nowadays service industries instead of manufacturing industries became principal part of FDI. The academe also focused on this phenomenon. They paid more attention on researching the fields about services FDI. Moreover service industries stand on an important station in our developing economy. Attracting services investment is in favor of enhancing our competition of service industries and improving quality and structure of service industries. And services outward FDI began in our country. Then the research about services FDI, has more important signification to our service industries and the whole economy.Based on the character of service industries and services FDI the study began. The explanation of services FDI of Dunning's OLI(the eclectic theory of international production) is the academic foundation. Firstly, to be independent variables, six factors about host country environment which influencing service FDI is put forward though analyzing the character and trends of development of world service industries and FDI. And we use linear regression model to analyze those independent variables and elicit the prominent factors. Then utilizing gravity-model working by Anderson this thesis handles the modified gravity-model which based on character of services FDI. This empirical study analyzes influencing factors of service FDI locating selection under interaction between host country and mother country. Finally, based on result of the empirical evidence, combined the status quo of service industries and services FDI of our country this article advances policy advices about how to attract services FDI and how to invest outwards.