Research On The Location Factors Of FDI In Modern Service Sectors Of Jiangsu Province

With the development of information technology and the accelerated process of economic globalization, the global industrial structure has undergone tremendous changes.Services gradually replaced the manufacturing industry of the dominant position of economic activities. Finance, insurance, business, real estate and other modern service industry are international industrial investment areas of focus.Foreign direct investment is a major booster of rapid development of modern service industry.The share of services sector about foreign direct investment in various countries are constantly rising.However, because of the international financial crisis and economic recession, global foreign direct investment appears a clear downward trend.In response to this phenomenon, China's modern service industry should pay more attention to what able to better attract foreign investment, and we all deserve careful consideration about it. As an economical developed province, Jiangsu is one of the most active areas attracting FDI of modern service industry.Also, the Jiangsu provincial government responds positively to the call center, has issued the relevant policies and regulations to guide and support the use of foreign capital to promote the accelerated development of modern service industry.Researching on the location factors of FDI in modern service sectors of Jiangsu Province has important practical significance.This modern service industry in Jiangsu Province to actively attract foreign direct investment as a clue.Firstly, the paper discusses the basic theory of modern service industry and foreign direct investment.Secondly,this paper describes the basic situation of the development of modern service industry and foreign direct investment of modern service industry in Jiangsu Province.And then this paper establish a framework about determinants of modern service industry's Foreign Direct Investment in Jiangsu Province.This framework considers the demand factors, supply factors and market environment factors.On the base of the actual situation in Jiangsu Province and the data availability,we select eight quantifiable indicators and use time series models to analyse the effect of foreign direct investment about modern service industry in Jiangsu province.Finally, on the base of the results of empirical research and combing with the present situation of the modern service industry, we should increase the intensity of foreign direct investment,adjust the layout of the industrial sector distribution,develop the education,improve infrastructure environment,try to improve the services market-oriented aspects step by step in order to improve the foreign direct investment of Jiangsu Province's competitiveness.