The Study Of FDI’s Impact On The Three-industry Structure And The Internal Structure Of The Service Industry

With the integration of the world economy, foreign direct investment (FDI), as the main form of international investment, has more and more significant influence over the economy of all countries. China has become an attractive destination for FDI as well as an important base of international industrial transfer. On the one hand, the massive inflow of FDI made up for the gap of capital and foreign exchange at the earlier stage of China’s economic development. Meanwhile, it promoted the international competitiveness of relevant industries through the technology spillover. On the other hand, there were also many problems while introducing FDI in China. The industrial structure of FDI in China is relatively low-level and has much similarity with China’s own structure. China attached too much importance to the quantity of FDI while ignored its quality. How to reasonably introduce and make full use of FDI is an important issue to China’s sustainable economic development. It is very timely and has high theoretical value and practical significance to make in-depth research on how to give full play of FDI to adjust China’s industrial structure in the wave of international industrial transfer, as well as how to avoid the negative impact of FDI.The paper selected the industrial structure effect of FDI as research object, and followed a logical structure of "background---relevant theory and literature---analysis of current situation---empirical study---mechanism and means---SWOT analysis--policy recommendations" to organize the full text. On the basis of systematic comb of China’s industrial structure evolution as well as review of classical theory and the related literature, combing the specific condition of China’s industrial and FDI structure, the paper analyzed FDI’s impact on both the three-industry structure and the internal structure of the service industry. Moreover, the paper adopt the cointegration test method and built the error correction model to explore the extent, direction and mechanism of FDI’s long-term and short-term impact on China’s industrial structure. At last, some targeted countermeasures were proposed based on SWOT analysis.This paper indicated that through the change of China’s investment and consumption structure, technology transfer and spillover effect, industry association effect, competition and demonstration effect and so on, FDI can promote the optimization of the three-industry structure and the internal structure of the service industry in the long turn. However, because of the isomorphic structure and other drawbacks of FDI in China, it needs a relatively long period for FDI to show its optimization effects.Accordingly, the paper believed that we must consolidate strengths, avoid weaknesses and grasp the opportunity of international industrial transfer. China should take effective measures to maximize the positive effect of FDI to our industrial structure. The paper put forward some countermeasures, such as paying attention to the quality of foreign capital, guiding foreign investment flows, strengthening the market competition mechanism, changing government management mode, improving the legal system foreign capital, enhancing China’s ability to undertake international industrial transfer, cultivate international competitiveness of national enterprises, etc.