Effect Of Services FDI Tianjin Economic Growth

With the deepening of economic globalization,more and more foreign direct investment flocks to the service industry. At the same time, many countries in the world are promoting economy to develop stably and continuously by constantly adjusting the economic growth mode and speeding up the upgrading of industrial structure. FDI in service industry is becoming an important force to promote the economic growth of a country. In recent years, with the gradually increase of opening up of the service industry in Tianjin, the service industry becomes more and more mature, and more and more foreign direct investment turned to the service industry in Tianjin, then accelerates to promote the economic growth of Tianjin. We must pay attention to that though more and more FDI flocks to service industry, there are still many shortcomings in the development of Tianjin’s service industry:there is a wide gap in the using of foreign capital in service industry compared to the world average, and traditional service industry occupies too large a proportion of the service industry, and at the same time, the development of modem service industry is not quick enough, and the quality of practitioners in service industry need to be further improved, and all of these problems need to be solved. By analyzing the use of FDI of service industry in Tianjin, the article aims to provide some ideas and reference in better using and guiding foreign capital to rationalize the development of service industry in Tianjin, and expects to use FDI to service the promotion of economic development in Tianjin more rationally.This paper is divided into five main sections to study the impact of FDI on the economic growth of Tianjin. The first part is an introduction, and aims to introduce the significance of the topic, ideas and methods of this article, and at the same time, sorts out the relevant research literature at home and abroad, and gives the overall structure of the thesis; The second part introduces some theoretical basis about the service industry’s FDI and economic growth, as well as some theoretical models, which is the theoretical basis of deepening analysis of the article; The third and fourth part are the core of this article. The third part focuses on the present condition and character of service industry in Tianjin, and analyzes the actual use of FDI of services industry in Tianjin, and conducts normative analysis briefly about how service industry’s FDI promotes the economic development of Tianjin; the fourth part is the empirical part of the article. Firstly, we research the relationship between service industry’s FDI and economic growth of Tianjin, and then select six factors of capital accumulation, industrial structure, technical level, employment, financial level and human capital to conduct empirical analysis of the mechanisms of action of Tianjin service industry’s FDI on economic growth of Tianjin area, as well as the size of the impact. Finally, by using the empirical results, the article provides some suggestions about how to use FDI to promote economic development more rationally from four aspects (advantages, disadvantages, domestic and foreign) of service industry’s FDI of Tianjin.