Research On Performance Of Using FDI On Service Industry In Liao Ning Province

The rapid rise of the service industry is the one of the most striking features of economic development since the mid-20th century. Since the20th century80years,global economic presents the trend of transition from "industry-oriented economy" to "service-oriented economy".With the adjustment of the world economic industrial structure,much of FDI started flowing to service industry,increasing the proportion that service industuy’s foreign direct investment in the world taked up total manchuria. Along with China’s economic development, China has become the largest number of country in using FDI in the world. At present Liaoning province is in the second stage of dunning’s four stages of FDI, Namely, investment environment of Liaoning province has been improved, market has been expanded, a lot of FDI rapidly flows to Liaoning.If Liaoning province want to develop its economic,it must seize the favorable opportunity to effectively make use of FDI to develop the service industry.This paper summaries related theory of services and FDI in Liao Ning Province, points out that service also applies to the general theory of FDI, states economic impact of investing in services’ FDI for the host country. Analyzes the present situation of services and FDI in Liaoning province, obtains that Liaoning province’s services still need to continue development, the development of kinds of services is not balance, and proportion of investing in services’ FDI taking up FDI is not high, FDI of investing in kinds of Service industries have unreasonable structure. On this basis, I conduct the empirical analysis. Firstly, I use co-integration tests to prove a long-term and stable relation between services’ GDP and services’ FDI in Liaoning province, use Grange causality test to show Causal relationship each other in lag1, and ln FDI3is Grange cause ln GDP3in lag2,but ln GDP3does not Grange cause ln FDI3.Then I analyze the performance of kinds of service industry by using the grey relation method, calculate correlativity between FDI of investing in kinds of services and Liaoning services’ capital accumulation effect, FDI of investing in kinds of services and Liaoning services’ employment expansion effect, FDI of investing in kinds of services and Liaoning services’ technology spillover effect, FDI of investing in kinds of services and Liaoning services’ industrial structure effect, FDI of investing in kinds of services and Liaoning services’ trade expansion effect.In conclusion, Liaoning should gives priority to the development of High technology industry such as information transmission, computer service and software, scientific research, technical services and geological KanZhaYe and the development of residents service and other services, financial, water conservancy, environment and public facilities management. Liaoning services’ industry structure effect is poorer, namely Liaoning province’s FDI of investing in services hasn’t a good optimization function for the industrial structure of Liaoning. Finally, I promote countermeasures and Suggestions of the effective use of FDI of investing in Liaoning services according to the above question.