A Study Of Foreign Direct Investment In Hunan’s Service Sector

With the development of economic globalization, the multinational enterprises around the world organize production activities in the global scope, and the internationalization of production led to the internationalization of service trade, the multinational companies also need access to support from global trade,communications, financial, circulation, etc. Entered the 21 st century, with the manufacturing industry transfers to developing countries, in some developed countries,the wave of the service industry gradually transfer to developing countries has been formed, the foreign direct investment in the field of services goes beyond the investment in the manufacturing industry, and become the world’s main investment way. China has been one of the most attractive countries to foreign direct investment,because of its huge market capacity and potential.After China carried out reform and open policy, he made good on his commitments, the service sector openness in domestic gradually expanded. And the service industry will become the biggest degree of opening industries in China foreign direct investment.As the powerful city of central provinces in China, Hunan province with the help of development of "The Whole Zhujiang Triangle Zone" economic cooperation area,there is huge advantages to the development of service industry to absorb foreign capital. However, compared with the coastal cities in the east and highly opening degree cities, there still exist such problems as insufficient and unreasonable structure for service industry by using foreign direct investment in Hunan province.The thesis is divided into five parts. In the first place, it introduces significance and background of the full text, the structure of this article research,research methods, innovation and deficiency in its introduction. And expounds the domestic and overseas research status about the foreign direct investment in service industry.The second part defies the service industry, foreign direct investment and relevant concepts, this paper expounds the effect of using foreign direct investment for countries. In addition, it also analyzes the applicability of the classical theory about services in economics fields.In the third part, in the background of using foreign direct investment in China,it studies the present situation of using foreign direct investment in Hunan province, Moreover, it analyzes the gross changes and industry distribution of foreign direct investment, and sums up the advantage of using foreigndirect investment in Hunan province. The fourth part uses the method of empirical research for the influencing factors of service industry in Hunan province, through Eviews5.0 software for data processing and Granger Causality Test, it is concluded the factors impact on it. The fifth part is based on the above researches, put forward to countermeasures and suggestions for further expanding the scale and improving the quality of using foreign direct investment in Hunan province.