An Empirical Study On The Effect Of FDI In Service Industry On China’s Exports Of Trade In Services

As a re-allocation of production factors between regions, FDI had a significant impact in the world’s economic development technological progress and industrial upgrading. With the formation of the global service economy, the amount of FDI flowing into service industry has already exceeded Manufacturing industry, and becoming FDI’s major target area, our country’s FDI and trade of service industry has also achieved rapid development at the same time. On the theoretical study, Scholars abroad and domestic began to switch the target area of FDI’s impact on international trade from goods to services, but relatively speaking, the research on services’ area is limited and the conclusions are not consistent. So the theoretical and Empirical Analysis on the impact of services’ FDI on exports has a guiding significance on leading FDI to services effectively and developing our country’s service trading.Referring to the theories of international investment and international trade in services, and other related subject knowledge, this paper attempts a system study on the impact of FDI on China’s exports of trade in services. It is divided into six chapters, in chapter one, there is a summary about the background and significance of topic-selection, the research actuality and its methods and contents. Chapter two analyze the theories and reviews of FDI and exports of services. In chapter three, it analyze the current situation of FDI in services and exports of services from overall and structure perspective separately. Chapter four analyze the mechanism FDI in services affect exports of services from four aspects, which is capital-filled mechanism、technology spillover mechanism、demand mechanism、industry linkage mechanism. In chapter five, firstly it test the cointegration and causality relationship between FDI in services and exports of services in our country; then test the mechanism FDI in services affect exports of services by Regression Analysis; finally divided the services export sector into traditional part and new-type part and test the Influence mechanism. The results show that Long-term co-integration relationship is existed between our county’s FDI in services and the exports of services,FDI in services increase the total exports of services mainly through promoting the service industry and the growth of demand, it increases the exports of traditional services through promoting the service industry and increases the exports of new-type services through promoting the growth of demand. The last chapter come up with suggestions to increase our country’s exports of services. The innovation in this paper is discussing the mechanism of FDI in services affecting the exports of services based on Perspective of host country, and using china’s actual date to carry out Empirical test such as cointegration test and regression test to confirm the mechanism, besides, it tests the mechanism of FDI in services affecting traditional exports of services and new-type exports of services separately.