| As the development of global economic integration, the service industry is getting more and more attention. The service industry accounts for the proportions of GDP is also getting higher and higher, and it is the only way to absorb foreign investment in order to develop Anhui’s service industry. Since the reform and opening-up, Anhui province has got some achievements in development of service industry and FDI, but various problems of attracting and utilizing foreign investment still exist and the influence of FDI to each industry is different. So studying of the relationship between FDI and the service industry is very vital to promote the development of the service industry and divert FDI in service industry.The paper analyzed the effects to the service industry caused by FDI utilizing in Anhui province service industry. Firstly, the article explained the concepts of the service industry and FDI. Secondly, this paper gives a comprehensive analysis of present situation and characteristics of SFDI in Anhui province. Thirdly, the paper makes the econometric analysis to focuses on the FDI how to impact the development of Anhui’s service industry. On one hand, it studies of the relationship between FDI and service industry based on cointegration test method. The results shows that here is a stable positive relationship between them, and FDI promote the development of the overall service economy; On the other hand, with the help of panel data model, this paper studies the growth effect of FDI to the specific industry, and find that there are great differences between the various service industry. Finally, combining theoretical analysis and empirical analysis of the conclusion, we give some useful suggestions about FDI introducing into service industry. |
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