The Spillover Effect Of FDI In Producer Services On Manufacturing Industries

With the gradual relaxation of the opening up of China in recent years, what aboutthe effect of inward FDI in producer service industry on manufacturing in differentregions of China? Compared with the domestic manufacturing enterprises andforeign-funded manufacturing enterprises, which kind of manufacturing enterprisesproducer services spillover effects of FDI worked is more significant? This paperbased on the relation data of21provinces from2004to2012, and from the view ofproducer services, firstly it studied the path which FDI in producer services spilloverto manufacturing industries,and did a further research on analyzing the difference ofdifferent types of spillover effect of producer services on manufacturingenterprises. The results show that, for different regions of the producer serviceindustry, because of its investment environment, the ability to attract FDI isdifferent, meanwhile, because of the “Threshold Effects”,the spillover path ofproducer service industry FDI is different in different regions, so there are differencesin the degree of spillover; at the same time as the productive service industry has theproperty of follow manufacturing,the productive service industry FDI gives moreservices to the foreign-funded manufacturing enterprises, while has little impact onthe domestic manufacturing enterprises, information technology of producer servicesFDI plays a crowding out effect on domestic manufacturing enterprises. Conclusionand policy meaning includes: it is suggested that different regions should improveinvestment environment according to the level of its development, and improve thequality and efficiency of FDI accordingly; The government should release theinformation technology class of producer services conditionally, to upgrade theproducer service.