The Empirical Research On Productivity Spillovers From FDI Of Producer Service Industry

With the development of economic globalization and the adjustment of worldeconomy structure, as an important part of industry structure, the service industrygradually becomes the main force of economic development of every country. Afterour country joined into WTO, the status of foreign direct investment in China’seconomic continues to improve. It brings a large number of employmentopportunities and economic profit for our country, and promotes thecontinuous growth of China’s economic strength. In various industries, the producerservices of foreign direct investment (FDI) play an important role that not allowed tobe ignored.In this paper, we choose China productive service industry as the researchobject, focuses on the research of FDI Productivity Spillover and overflow effect. Bycomparing the research status of domestic and foreign, based on the existing model ofknowledge spillover and human capital spillover model, we propose7theoreticalassumptions. By establishing econometric models to test the hypothesis, we analysisthe productivity spillover effect of producer services’FDI, and puts forward someeffective suggestions.In this regard, we select5representative industries of the producer serviceindustry, including "the transportation, storage and postal industry","informationtransmission, computer service and software industry","finance","leasing andbusiness service industry","scientific research, technical services and geologicalprospecting industry," and do empirical research on the data of2004-2011. The mainresearch contents include:①Through descriptive analysis to understand thedevelopment trend of selected industries in the sample interval, the preliminaryresults show that the output growth of intra-industry in use of FDI is the fastest;②Using the unit root test verifies the smoothness of variables in the model, the resultsshow that all the variables are integrated of order one;③Using the co-integration testanalysis the long-term relationship between variables, the results show that allthe variables have a long-term co-integration relationship, and they can participatein regression analysis;④Using the F test and Hausman test to determine that weshould use individual fixed effects regression model in this paper. We use Cross-section SUR to test the hypothesis before, get the following conclusions:(1) InChina, there are horizontal productivity spillover effects in intra-industry andvertical productivity spillover effects in inter-industry of the FD in the producerservices;(2) The horizontal productivity spillover effects of FDI is positive, but thevertical spillover effect is negative, besides, the backward spillover effect is greaterthan the other two.The results show that, the foreign direct investment has good effect in the sameproductive service industry in China, can significantly improve the productivityof them. But in the inter-industry, foreign enterprises and the upstream industry moreclosely, and the effect of FDI is greater. However, due to the disadvantage ofproducer services in China, at present, the impact of FDI in the inter-industry is stillnegative; it hinders the productivity of the upstream and downstream. Based onthis conclusion, the paper puts forward three suggestions, hoping to promote theeffective use of FDI in productive service industry.