Research On The Impact Of FDI On Productive Service Trade In China

The relations between FDI and international trade has always been the focus ofacademic research, scholars from various countries found absorption there iscorrelation between foreign direct investment and international trade from differentangles of the theoretical and empirical research. An alternative theory formed thebasis of the theory of international trade and foreign investment theory, the theory ofcomplementarily theory, the compensation investment theory, the uncertainty relationstheory of FDI and international trade relations. Producer services research perspective,attempts to demonstrate the applicability of these classic theoretical model in thisemerging producer services industries. Producer services as a binder of manufacturingand services optimize the industrial structure and the integration of industrial chainformation of competitive advantages of scale and specialization in the deeper areas ofthe higher level of participation in the global value chain plays a crucial role.Therefore, the paper’s research has important theoretical and practical significance.This paper studies the producer services in China’s foreign direct investment,productive trade in services, as well as the main impact of China’s foreign directinvestment in the production and trade in services. Productive trade in services canstill be considered a new field of study, research and even fewer for producer servicesFDI. Producer services as a binder of the manufacturing industry and the servicesector, upgrade China’s industrial structure and integration of industrial chainformation of the competitive advantages of scale plays a vital role.First expounded thetheory of international direct investment and international trade relations between thebasis to define the relevant definition of producer services, production services trade;then introduced the Producer Services in China use of FDI and trade in services ofproductive development status and problems, Producer Services in China foreigndirect investment and production services trade the external correlation exists;mechanism and path of the impact of productive trade in services, producer servicesutilization FDI and analysis from the host country perspective and use China’s use ofproducer services FDI, service trade import and export volume of production deficitsvariables using unit root test, co integration test model validation draw producerservices FDI promote production services trade and conclusion not obviousalternative role. And further last in the theoretical and empirical basis of producerservices, the paper proposes a solution on attracting investment and promoting thedevelopment of production and trade in services.