Research On The Determinants Of FDI In Dalian's Producer Service Industry

Since the 1980's,the world economic structure has seen a profound change,in development countries,the proportion of long term dominant manufacturing industry has been continuously dropped off,and gradually transforms into service via the carrier of producer service industry.As the producer service industry(hereinafter called the PS industry)acts as a highly-concentrated,highly value-added and knowledge-intensive intermediate service industry,it is playing an irreplaceable role in advancing the upgrade and adjustment of industrial structures,increasing efficiency and reducing the dependence on scarce resources and realizing sustainable development.Under this globalization background,PS industry has become the new economic growth point by nationals' active support and investment.Developed countries such United States,Britain.Germany.France has the most fully developed PS industry,and have the lion share.As the northeast Asia important international center of shipping and logistics,and software and regional financial center,Dalian has advantages in the development of PS industry and attracting FDI.With the approval of the state council of the People's Republic of China,it established Dalian Free Trade Zone and "software export base"Dalian Software Park respectively in 1992 and 1998,attracting Volkswagen,Intel,HP,Accenture,Panasonic,and many other European and American and Japanese companies to invest.Especially in recent years.But it should be pointed out that,due to the government's long reliance on manufacturing and the insufficient attention to the development of service industry,and the higher threshold set up for foreign investment in service industry,the base and the proportion of FDI in service industry is small compared to its fast growth.The internal structure of FDI in service industry,especially in the producer services is unreasonable,and it mainly concentrates in some fields,such as transportation industry,information transmission,computer services and software industry which is a severe constraint on the optimization of industrial structure,the transformation of the mode of economic growth and sustainable development.This paper takes FDI in Dalian's PS industry for research object,firstly summarizes the domestic and foreign scholars researches on FDI in services and PS industry,then use charts and tables to describe the overall scale of FDI in Dalian's PS industry from the perspective of industry distribution,regional distribution and FDI source distribution,finally find that the scale of FDI in PS industry is small,and the internal distribution is uneven.In order to deal with this problems,we use the cities' utilization of FDI in Dalian's PS industries and other related data to take empirical analysis.The author respectively builds time series period model in the light of the overall PS industry and panel data model in the light of subdivision PS industries.The empirical results show that:(1)to the overall PS industry,market size and market growth potential has a positive effect on actual utilization of FDI flowing to PS industry.But the information tramsmission,computer services and software industry,scientific research,technical services and geological prospecting present the negative effects.(2)The level of urbanization,skilled labor,and marketization have a positive impact on PS industry FDI.(3)The PS industry FDI has an obvious tendency to pursue manufacturing FDI,both in the overall and its subdivisions.(4)No matter in overall or subdivision of PS industry,there is a positive correlation between average wage level and PS industry FDI,which is contrary to the previous research conclusions.(5)Financial market distortions make it difficult for non-state enterprises to obtain financing from domestic financial institutions,it is also the important factor that affects the FDI in PS industry.Finally,based on the results of the empirical analysis,we give the following policy recommendations:(1)Focus on the market size and the economic growth potential on the actual utilization of FDI in PS industry.(2)Reinforce the leading role of FDI in manufacturing.(3)Provide good institutional environment.(4)Speeding up the process of Urbanization.(5)Emphasis on the training of personnel and improve the level of regional human resources.(6)Develop the characteristic industry of PS industry.(7)Strengthen the construction of regional financial center.