Influence Of FDI In Service Industry On Beijing’s Export Of Services Trade

With the accelerating pace of global industrial transfer since2003, International transfer of service industry has become a characteristic of the world economy. The global services trade develops rapidly. After China entering into WTO, Foreign capital has result in a huge shake for economic mode and industrial structure in China. Because of the comparative advantages in undertaking the international transfer of service industry, Beijing becomes an important region to absorb the foreign capital and enhance the competitiveness of services trade. During the11th Five-Year Plan Period, the service industry of Beijing had made great progress. The service economy has become an important part of the city’s economic structure.In this study, through literature research and empirical analysis, the influence of FDI on the scale and structure of the export of service trade in Beijing was discussed. This paper, which focus on Beijing city, make up for the the deficiency of present studies. The relevance between Beijing’s advantages in attracting FDI and characteristics of FDI in service industry was found. The level of utilizing foreign capital and the export of services trade in Beijing were obtained. Furthermore, Influence of FDI in service industry on Beijing’s export of services trade was analyzed from theoretical and empirical perspective.This paper was divided into six parts, in the second and the third chapter, current situation of FDI and export of services trade in Beijing were analyzed, and the matching relationship between them was found. In the fourth chapter, the mechanism and the influence of FDI on export of services trade were present according to "Diamond Model" and the factor affecting the export of services trade. In the fifth chapter, Granger Causality Test and ECM model were employed to verify the theoretical results. The results demonstrated that FDI has positive effect on Beijing’s export of trade in services. At the same time, there are problems and constraints in foreign capital use and the development of trade in services.Finally, countermeasures and suggestions were given to exertive the influence of FDI in service industry of Beijing on the scale and structure of the export of services trade.