Research On The Determinants Of FDI In Producer Services In Western Region

With the characteristics of knowledge and technology intensive, producerservice are increasingly showing its representative of productivity.Entering21stCentury, FDI of producer service in China have been expanding. In2012, the FDIamount is202.6million dollars, growth of8.7%over the last year, and the pace ofdevelopment is self-evident. However, FDI of producer service of China is veryunbalanced in different region. As the most dynamic and fastest-growing region inChina, the eastern region which drove by the manufacturing industry in recent yearshas been the most developed producer service area. On the contrary, for the influenceof various factors, the development of producer service in the western regions inChina is relatively backward, and can’t become a strong pillar of regional economicdevelopment. As the driving force of economic development, FDI did not play itsrole. What are the main factors influenced the western region of producer serviceindustry use FDI. In order to solve this problem, this paper studies the determinantsof FDI in producer service in western region of China.First,this paper reviews the relevant literatures, and analyses the mainstreamtheory of FDI to become the theoretical guidance of the paper; Then, based on theanalysis of the FDI status of the producer service in western, it studies thedeterminants of producer service through theoretical and empirical analysis. Finally,it makes relevant policy recommendations according to the conclusion.