Research On Location Selection Of Chinese FDI In Producer Service Industry

With the accelerating pace of global international services transfer, the modern service industry has obtained rapid development in the field of information technology, human resources management, finance, insurance, accounting services, and so on. Although our country has become a great manufacturing nation, service industry structure upgrade slowly while the development of producer services are inadequate. As an important way to promote the development of producer services industry, FDI has played an important role in promoting transformation and upgrading of our country manufacturing industry and industrial integration. Therefore, making good use of the industry conditions to undertake international transfer of producer services and maximizing the positive effect of FDI to capital formation and technology spillover will be the key factor in China’s economic rise.Based on Geo-business and other FDI choice theory, this paper starts from the research perspective of FDI location choice and discusses the influence mechanism of producer services FDI location selection especially. On this basis, the influencing factors of FDI location selection in producer services are studied. Finally, the corresponding policy recommendations to explore feasible ways to increase the competition ability of the producer services industry are put forward through the empirical study that analyze the advantage and disadvantage factors of FDI location selection.Through empirical study of FDI location selection in overall producer service, it shows that the size of the market, the degree of infrastructure, economic openness and manufacturing FDI has positive effects on the regional choice of overall producer services FDI. The human resource factor endowment has positive effect on the regional choice of eastern producer services FDI through the aspect of labor supply and service demand for producer services. The human resource factor endowment has positive effect on the regional choice of Midwest producer services FDI through the aspect of labor supply for producer services. Patent protection level has no positive effect on regional producer services FDI. Through empirical study of FDI location selection in several producer service industries, it shows that the size of the market, the degree of infrastructure, regional economic openness and industry employment ratio has positive effects on the regional choice of several producer services FDI. Among them, the industry employment proportion has negative correlation to transportation, warehousing and postal service FDI. The population change rate and commercial and industrial property value has negative correlation to the real estate FDI. The regional patent protection level has positive correlation to information transmission, computer services and software industry FDI. By analyzing the mechanism of action and effects of related factors, this paper has put forward countermeasures and Suggestions of FDI policy in producer service industry.