The Study On The Influence Of Fdi On Service Industry Of Henan Province

With the globalization of the world economy and the rapid development of world trade in services, thedevelopment of the world economy is playing an increasingly important role. The service economy hasbecome one of the focuses of global economic competition. Our country belongs to a developing country,service economy starts late, but the development speed is swift. Service economy in China’s economicdevelopment has become an indispensable part. The arrival of the economic globalization and the Internetin the economic life of a wide range of applications, makes a variety of products and services in a varietyof ways to go out of the country and compete in the international market.After China joins WTO, serviceindustry gradually open, the service industry will become the biggest field in China. The proportion of thesize in service industry is a measure of the coordinated development of regional economy and society.Therefore, we must develop the China’s service industry.In recent years, Henan province economy obtained rapid development. But the proportion of GDP inHenan’s service industry is less than the national average. From the global perspective, The serviceindustry has already become the point of global economy growth. The level of the service industrydevelopment is measure the level of economic development in an area sign. In the tide of economicglobalization, how to improve the proportion of the service industry in Henan province economicdevelopment become the crucial question. Now although the service industry of Henan province is in theundeveloped stage, the service industry in Henan province development prospect is broad and has a strongdevelopment. Therefore, we must put the development of service industry in Henan Province as a majorand a long-term strategic task. The development of service industry in Henan province has a variety ofways, including the rational use of foreign direct investment is the important factor to promote thedevelopment of the service industry.The next few years is the key period to realize the rise of central place for Henan province. To realizethe rise of Central Plains must increase open strength, strong absorption and integration of internationalresources. The domestic and foreign development experience shows, economic openness play an importpart on regional economic sustainable development. In a Long-term, the opening up of Henan Provincestarting point is low, progress is slow, its economic opening degree of serious lower than the nationalaverage, and to the eastern coastal provinces there is a huge gap. From the reality of Henan development,using foreign capital energetically is the new stage of Henan economic development requirements. As atraditional agricultural big province, in recent years, the rapid development of industry makes Henanindustrialized process is accelerated, but is still in the initial stage, growth stage, the economic structureneeds to be further optimized, growth need further conversion. Henan wants change from agriculturalprovince to economy province, from resource province to industry province, foreign capital is a powerfuldriving force and an important guarantee. However, the characteristic of the foreign invest in Henan is low,and concentrated especially in the manufacturing sector, foreign investment in services has always been onthe low side. However, with the strategy of central rise gradually implementation and development, Henanprovince ushered in the new economic development opportunity. The strategic location and locationadvantages of Henan have become increasingly prominent. This would be sufficient conditions for FDItransfer to inland provinces.It also be an important step for FDI to Henan. But how to use the historical opportunity to develop the service industry has become an extremely important subject. Through readingmassive literature materials and carring on the summary, the author found that in many province areaeswhich service industry develops very rapidly,have do research on how to reasonably, efficiently utilizingFDI to promote the regional development of the service industry. Unfortunately for Henan, the detailedresearch is very little.This paper makes research on the development of service industry in Henan Province.It collects andsorts the data about FDI utilization of service industry.This paper uses international investment, industrialeconomics basic theory as the theoretical guidance. It uses empirical analysis method to examine themutual relationship between the FDI and service industry in Henan Province.In the light of the advantagecharacteristic of Henan Province, this paper analysises the service industry using of FDI in Henan province,and study the impaction of foreign direct investment in the service industry of Henan Province. Accordingto the results,this paper gives the countermeasures and the suggestiones for the Henan service industry.