Study On Absorption Capacity Effect Of Producer Services Cluster On Urban Economic Growth: Jiang Su Illustration

Since 1970 s,the service industryin the global scale gradually emerging,and gradually becomes the dominant force,its ratio is 70.5% in the global economy and even more in OECD in 2014.FDI in service industry has so important influence on service industry that undeveloped countries tend to give these multinational corporations some preferential policies,expecting that FDI in service industry promotes the development of domestic service industry.In 2011,the service industry of China in the first time exceeded the manufacturing industry and in 2013,China's service industry accounted for 56% of the national FDI.But a leading multinational service corporation investment tend to lock the industry system of China in the low-end of the global value chain,which is in the international division of labor in the lowest dot of the smile curve,that restrictes the development of China's service industry.With the proportion of service industry in China,the effect of FDI on service industry is worth thinking about.Therefore,it is very important to study the relationship between FDI and service industry growth.On the basis of relevant literature and theoretical analysis,this paper draws the three paths of service industry FDI,namely,technology spillover effect,capital effect and employment effect.Technology spillover effect refers to the service industry FDI conducing the competition effect,demonstration effect,industrial linkage effect and human capital flow effect on domestic service enterprises to produce technology spillover.Capital spillover effect refers to the transnational corporation FDI inflows,make up the “savings gap”,directly promoting the development of the service sector firms in the host country,in addition,the industry association,also contributed to the expansion of the scale of investment in upstream and downstream enterprises in the service industry.Employment effect refers to the direct effect and the indirect effect of increasing employment and improving the quality of employment.Based on this,this paper puts forward two hypotheses.According to the development of China's service industry and the introduction of the status of service industry FDI analysis,combined with the service industry total factor productivity level analysis,sums up the characteristics of China's service industry FDI.On this basis,through the establishment of regional panel regression model of the data of 26 provinces,it is verified that the efficiency of service industry FDI and regional service industry is the positive correlation between the total factor productivity of regional service industry.Firstly,we calculate the total factor productivity of regional service industry as the dependent variable,and take the FDI into the model as independent variable,and take the path of service industry FDI to consider the path of the service industry efficiency.The empirical results show that the FDI technology spillover in our country does exist,and the path o is also significant.The capital effect has the most significant effect on TFP,followed by the employment effect,and finally the technology spillover effect.However,when the TFP component is subdivided into different parts,each path is different,and the effect of technology spillover effect on the service industry is negative.Finally,some suggestions are put forward according to the conclusion.