Research On The Effects Of China’s Service Opening On Its Internal Structural Optimization

Since the reform and opening up of China, especially her joining the WTO in 2001, our degrees of opening up in service industries become greater and greater. The total amount of import and export trade in services has increased steadily, and the amount of foreign capital actually used is increasing as well. But there is still a certain gap between our country and developed countries, even some developing countries, so the openness is to be further improved. Meanwhile, the development of inside service industries is not reasonable, and the phenomenon of low proportion of added value of modern services, traditional services’main economic status, lack of coordination between employment structure and industrial development still exist, all of which are harmful to the development of our service industries.Based on the theories of international direct investment theory, the thesis analyzes the mechanism and optimization path where the openness impacts on the internal structure of service industries. Through the capital effect, employment effect, technology transfer effect, trade effect, competition effect and the effect of industrial structure’s adjustment, the opening up of service promotes the capital, technology, labor, free movement of factors of production, adjusting the factor prices and scale of industries, in order to achieve advancement and rationalization of the internal structure in service industry.Empirical analysis shows that opening up of service can optimize the service structural, while the coefficient of foreign direct investment is a little larger than the coefficient of trade in services, and the relation order between economic effects and foreign direct investment is employment effect, technical effect, capital effect, and trade effect. So the actual use of foreign investment promotes the services mainly through the role of employment effect, foreign capital effect, technology effect and capital effect of the development of services, while the correlation with trade effect is not really obvious.Therefore, we should strive to provide good environment for foreign capital in services, aiming at making foreign capital effect bigger; improve the creative abilities by ourselves, fasten the speed of technical transfer; pay more attention to the education of especial workers, so as to bring a larger employment coefficient; lead the foreign capital to an reasonable direction, promote the optimization of the internal structure of service industries constantly.