Foreign Direct Investment In Service Industry Internal Structure Optimization Research To Our Country

Since the reform and opening,the economic of China has been developing rapidly. After the accession into the WTO in 2001,the development strategy in China also changed, our country began pay attention to the development of service industry, and service industry also has a rapid development. The added value of service industry accounts for the proportion of GDP reached 46%, and the Service sector employment accounted for 38.5% of total employment until 2013,both proportion is higher than the first and second industry. Although the service industry has a rapid development, but the internal structure is not reasonable, the proportion of the added value and the employment in service industry is still small. The development of three major industries are inseparable from the inflow of foreign direct investment,especially the third industry, but also improve the internal structure of the service industry through physical capital effect, technology spillover effect and so on.This paper consists of six parts. The first part is the introduction, expounds the research background, significance, main content, research methods, innovations and deficiencies, research framework, and reviewed and summarized the literature in related fields,then describes the research direction of this paper. The second part firstly introduced the meaning of Foreign Direct Investment and the relevant theories of Foreign Direct Investment, then introduced the concept and classification of the service industry, the standard of the optimization of service industry, and the theoretical basis of the change of service industry structure. The third part is the analysis of the present situation,reveal the possibility of the optimization of internal structure in service industry by foreign direct investment by looking up the date,painting the form,comparing the date. The fourth part is the effect analysis of the optimization of service industry internal structure by Foreign Direct Investment. It is concluded that the Foreign Direct Investment has a real impact on the optimization of service industry internal structure. The fifth part is the empirical analysis, firstly I made date processing, then put the FDI of service industry and traditional service industry together to make cointegration test, finally, build the model,empirical analysis of the impact of FDI on the traditional employment in the service sector share of the service sector and increase the proportion of the value of. The sixth part is the relevant policies and suggestions.From the study we can conclude that(1) the employment and the added value in service industry present an increasing trend in each year, and bigger than the first industry and second industry.(2) the three major industries in China are very different in the utilization of foreign capital and the contract number of FDI the first industry decline year by year, the third industry, increasing year by year, but the traditional service industry is increasing slowly, Even some of the industry has reduced.(3) the inflow of foreign direct investment to the service industry promote the development of service industry, but the development of the service industry is not the same for each, article latter part of the service industry into the traditional service industries and modern services, then, we can also conclude that the proportion of the added value of modern service industry and the proportion of the employment in modern service industry is added. It’s shows that the inflow of FDI exactly made the internal structure of the service industry optimization.