Research On Determinants Of Foreign Direct Investment In Chinese Services

In the recent years, with the adjustment of global industries’ structure and theincreasingly deepening international division of labor, service industry has replacedmanufacturing industry and become the main stream of foreign investment field. AfterChina joining in WTO, the increasing rate of FDI in service industry is obvious higherthan in other industries. At the same time, the gradual lower obstacle of enteringservice industry makes a large quantity of foreign investment entering our country.The foreign investments make up for the insufficient capital that our country investsin service industry. And they also have great significance for the adjustment of ourindustries’ structure and the development of our service industry. It provides a goodopportunity for us to abandon the mark:‘World Factory’ and optimize the industries’structure.China has great cost advantage to provide services. So the increasing foreigninvestment in service industry is a rare chance for China. But as so far, the volume ofFDI in our service industry is much lower than the world average level.Manufacturing industry is still account for the largest proportion in our GDP.Thethesis mainly discusses the situation of FDI in our service industry. It transits intoservice industry’s FDI from introducing the development of FDI in our country andthe significance of developing service industry. It discusses the general situation ofservice industry in our country and the situation that some trades face include theirdeveloping trend. The thesis relatively overall describe the influence of foreigninvestment to our service industry.Innovations:1.Not only using the economics indexes for calculation and formula, butalso use the relevant theory of econometrics to empirical analysis and normativeanalysis, combination of quantitative analysis and qualitative analysis,and the use ofeconometric analysis software SPSS, Excel correlation cointegration test, to carry outtheoretical and empirical analysis,combined with the actual situation, reasonablecountermeasures are put forward, which makes the study more intuitive andmaneuverability.2.This paper use the statistics from year1989to2009wich lastedfor20years, improves the quantitative analysis, and it is helpful to the future practiveof guidance and maneuverability.3.This paper tried to select the new influence whichhas not been presented before,and found out the relationship between the newinfluencing factors and FDI of our service industry.