The Influence Of Productive Services FDI On Manufacturing Increasing

After joining the WTO, with the elimination of all kinds of obstacles and theimprovement of the policy, China’s absorption of FDI in service industry increasedsignificantly. Producer services have successfully been a pillar industry from auxiliaryindustry, and it has been not only an important part of GDP, but also an important featureof the industrialization. As Liaoning an example, the actual quote foreign capital is13.019billion dollars in2008, and it increase to$20.75billion dollars in2009, thegrowth rate of is more than50%. The FDI in service industry is$4.338billion,accounting for21%of total FDI in Liaoning. Producer services have high degree ofknowledge-intensive, and have very strong gathered force. Producer services can notonly speed up the industrial upgrading of service industry, but also promote thedevelopment of manufacturing industry. Producer services can fully promote thecorrelation of two industries and improve the regional competitiveness. Based on the dataof Liaoning, this paper research the path by which productive service industry FDIpromote manufacturing growth, and present more realistic policy recommendations.This article is divided into four parts. The first part carries on the theoretical basis inthis paper and the mechanism analysis of producer services promote manufacturing. Themechanism includes insufficient capital effect, income effect, technological spillover anddemonstration effect and competition effect. The second part analyzes the presentsituation of the producer services and manufacturing industry in Liaoning province, andpoints out the deficiencies in the process of impact. In the third section I select theappropriate intermediate variables, income technology and capital and empirical researchthe path by which the producer services promote the manufacturing industry in Liaoning.This part divides into two steps. The first step research the influence of producer servicesFDI to the three variables; The second empirically study the impact of conductionvariables on manufacturing growth, completing "the productive service industry FDI-conduction variables-manufacturing growth". Combining two steps of empirical results,it concludes the degree of influence of the productive services FDI on manufacturing growth by income, technology, capital. And The income level promoting is the mostsignificant. Finally, based on the results of the theoretical and empirical analysis, it putsforward some policy suggestions on how to strengthen the effect of productive servicesFDI on manufacturing growth. Such as improving the agglomeration area of productiveservices, strengthening the industry relevance, strengthening government support andguidance and so on.