The Structure Of Service Industry FDI, Technology Progress And Economic Growth

With the development of global economic integration, Service industry is getting more and more attention. Now, from a global perspective, the service industry has become the key point of a country’s economic development, and the industrial structure optimization and upgrade of the labor employment. Since the twenty-first Century, the service industry has become an important field of the international direct investment. China is in a critical period of economic structural transformation, vigorously develop the service industry is an important way to realize the transformation of our economic structure, China’s service market has enormous market capacity and good development potential, that is making China become one of the most attractive countries in service sector FDI. Compared with some developed countries, the proportion of service industry FDI in China’s total FDI is relatively low, the structure of actual use of foreign capital in service industry also have certain differences with those developed countries. This time we taking the traditional international direct investment theory and the economic growth theory as instruction, based on deeply analysis on the status of China’s service industry FDI, aiming to examine the impacts on China’s economic growth and technology progress from the structure of FDI, and to seek an effective way to promote the reasonable utilization of foreign capital in service industry of our country.This paper first introduces the related FDI theory and the theory of economic growth; secondly, we deeply analyzed the service industry FDI of our country, defined the structure of China’s service industry FDI, focused on the analysis of the current situation, characteristics of China’s service industry FDI structure, and use comparative analysis method, to analysis problems of China’s service industry FDI; then, combined with the related theory of economic growth, we established an econometric model; use the panel data of seventeen provinces of China from 2005 to 2013, using panel data regression analysis method, to measure the effects of service industry FDI structure on the technology progress and economic growth in different regions, and to compare the results of the empirical analysis. Finally, analyze the empirical results, and put forward some policy suggestions.We conclude three empirical conclusions: firstly, both of the producer service industry FDI and customer service FDI can promote economic growth, the promoting effect in eastern region is more significant than in the Midwest regions. Secondly, the use of foreign investment on producer service industry has certain promoting effect on the technology progress of our country, and this effect is more highlighted in the middle and the west region. Thirdly, the customer service industry FDI has hindrance function to the technology progress of our country,and this effect in the middle and the west regions is more prominent.We put forward the following policy suggestions according to the conclusion of this study: Firstly, vigorously develop the service industry in China, to improve the overall level of the service industry of our country, and adjust the regional development of service industry FDI of our country. Secondly, to optimize the structure of the service industry FDI, strengthen the development of the producer service industry FDI, rationally use foreign capital of consumer services industry.