Research On The Impacts Of Producer Services FDI On The Productivity Of Manufacture Enterprises

Foreign Direct Investment (FDI) has developed rapidly in the service sector in recent years, becoming the main field of FDI worldwide, amount to＄570billion in2011, increased by16.37%than last year, accounts for40%of global foreign direct investment. Producer Services foreign direct investment in China is also increasing, from＄5.55billion in2004to＄18.64billion in2011, China’s producer services FDI has increased3.4times in just seven years.Judging from the percentage of value added, employment and exportation, manufacturing sector is and will still be one of the most important sectors in China. However, with the trend of manufacturing servitization, producer services have become an important source of the efficiency improvement in manufacturing sector, also due to changes of the environment of manufacturing sector, such as higher labor costs, more stringent from natural resources endowments, china needs to improve the level of producer services, improve the efficiency of manufacturing output to maintain international competency.Compared to the rapid growth of FDI in producer services sector and the importance of manufacturing sector in china, theoretical and empirical studies about the relationship between producer services FDI and manufacturing productivity are far from being enough.This paper first reviews the related research, briefly discusses the condition of producer services FDI in our country, then analyzes the mechanism of producer services FDI to improve manufacturing efficiency, then using panel data to test the effect of producer services FDI on the manufacturing efficiency in our country, at last, according to the theoretical analysis and empirical research results, put forward policy Suggestions to better use of producer services FDI.Specifically, this paper contains six chapters:Chapter one is introduction, presenting backgrounds, methods, contents and possible innovations of the study;Chapter two defines key concepts and reviews related literature;Chapter three presents the development and trends of FDI in producer services in china;Chapter four first introduce the roles that producer services plays in improving manufacturing industry productivity, serving as a basis for the analysis on the relation between producer services FDI and manufacturing efficiencies in china. Then analyze the direct and indirect channels through which producer services FDI influences manufacturing efficiencies in china;The fifth chapter, using China’s industrial panel data, the forward and backward linkage effects of producer services FDI on manufacturing efficiencies are tested empirically, then explain the results comprehensively;Chapter six, conclusion and suggestions, according to the theoretical analysis and empirical test results, targeted suggestions are proposed to improve the efficiency of using producer services in China;Possible innovations in this thesis are as follows:First:from the perspective of industrial linkages, producer services FDI’s influence on the efficiency of manufacturing industry are analyzed. Former researches have show that FDI spillover effect is more likely to happen through industry linkage. So this article studies the effect of producer services FDI on manufacturing industry efficiency from the perspective of industry linkage in china.Second:this paper builds an econometric model to test the effect of producer services FDI on manufacturing industry efficiency. Based on theoretically discusses of producer services FDI’s influence on the efficiency of manufacturing industry in China, using China’s panel data of manufacturing industry in2003-2011, empirically analysis the relation between the two, found that the producer services FDI’s forward linkage effect is positive, the backward linkage effect is negative.Third:according to the theory and empirical research results, this paper puts forward targeted suggestions.Due to this selected topic has certain innovative and the lockage of knowledge and ability, this paper has the following limitations:first of all, producer services FDI can influence manufacturing industry productivity through direct effect and indirect effect mechanism, this paper only focuses on the direct effect. Secondly, this article only collected data since2003; it may have effect on the accuracy on the results.In order to further enhance the explanatory power of this study, considering the direct and indirect effects of producer services FDI will be the direction of further research in the future.