A Study On The Impact Of Foreign Direct Investment On China 's Service Industry

With the economic globalization and the further opening up of the market economy, China begins to introduce a large amount of Foreign Direct Investment(FDI for short) for the development of the economic, while the effect of foreign direct investment on China’s employment pressure relief is paid more and more attention from all walks of life. From the service sector accounted for the variation trend of the total stock of global FDI and the proportion of development trend of China’s introduction of FDI in service industry, the focus of China’s and the world’s foreign direct investment has significantly shifted-- from manufacturing industry to service industry. According to latest data of the year of 2013, China’s service industry’s actual use of FDI absorption quantity has the first catch of the manufacturing industry. Service industry is a hot industry investment, and is the leading industry of employment, the use of the FDI of China, whether the FDI effect China’s service industry employment or not, and by what mechanism to produce effects brought to the labor market advantage. The research is has a certain theoretical and practical significance. This writer uses the method of combining empirical analysis and normative analysis in this paper, combined with the case of the financial industry on behalf of a service industry analysis method, from two aspects of the qualitative analysis and quantitative analysis to study the influence on the employment of the service industry in China’s service industry from China’s introducing FDI. The main core content as follows: Firstly in this paper explains the concept of the definition, theoretical foundation and theory overview of relations between FDI and the employment; Secondly the paper introduces the Chinese service industry the introduction of FDI course, the present situation and the characteristics and the existing problems and the Chinese service industry employment situation analysis in details as the starting point of the core contents of this article; and then analyzes the effect from foreign direct investment of China services(FDI) to Chinese employment. First the paper analyses the effect mechanism on direct and indirect aspects and then uses the quantitative analysis method of establishing the econometric model to made a test on the above analysis, finally comes to conclusion that the foreign direct investment of service industry has a positive effect China’s service industry employment; Finally, according to above analysis the paper comes to the conclusion and gives the countermeasures of the paper to Chinese service industry’s introducing FDI to promote the Chinese service industry employment.