Research Of The Influential Factors Of Foreign Direct Investment In Service Industry Of Our Country

Service Industry is one of the most increasing worldwide industries in recent years. It achieves superior development in China after entering the World Wide Organization, and is becoming a more and more important part of our country’s Gross Domestic Product. Meanwhile, the amount of FDI for Service Industry keeps increasing from 11.1 billion in year 2001 to 74.1 billion in the year of 2014,increasing by almost 6.7 times. In 2001, Service Industry occupies 41% of China’s GDP while this number climbs up to 48% in year 2014. The author studies Service Industry FDI in China and analyzes the relevant influence elements. Then it comes to some conclusion according to the sample data analysis and proposes several effective suggestions for improving the competency of China’s Service Industry. All of these imply great value and realistic value for the development of our country’s Service Industry and whole country’s economy.The article discusses the effects of our country’s Service Industry FDI from four main aspects:(1)The article explores the main effecting factors of Service Industry based on relevant theories and qualitative analysis. It also combines the findings with China’s FDI present situation to further verify whether these influences are key varies or not.Finally, it processes 9 specific independent variables from four Perspectives including economic development, relative costs, policy influences and the regional environment elements.(2)The writer firstly adopts quantitative methods to analyze the 9 specific elements which are influencing the Service business and receive relevant conclusions.In particular, it studies the impact factors of Service FDI according to regionalelements. Regional studying of effects enables the analysis more targeted, directed and comprehensive.(3)Reach out main factors which affect both the whole country and each region’s Service FDI through measurement results analysis. According to the researching report, the size of economy scale, the degree of opening to overseas and the development of Service have positive effects on China’s Service Industry FDI, while low marketization will hinder the development of Service FDI. As a whole, the main influencing factors to regions are keeping correspondence with the whole country, but small individual differences still exist.(4)In the last chapter, the author will propose relative and effective policies and recommendations: promote the whole economic development and regional economy’s coordinated development; increase the openness to foreign countries and deepen marketing reform; perfect infrastructure construction; enhance the function of entities with economic gravity; strengthen the quality of workforce; exert the aspiring influence of the government; improve investment environment.