Study On The Influence Of Service FDI On Internal Structure Optimization Of Service Industry In Shandong Province

With the escalation of the global industrial structure,the service economy has been further deepened,the focus of international direct investment has shifted to the service industry,and there is a tendency to gradually tilt to the knowledge and technology-intensive modern service industry.Since the reform and opening up,China's service industry has been developing rapidly and the internal structure of service industry has been continuously optimized.After joining the WTO,the degree of openness of the service sector in China's has been increasing,more and more FDI flows into the service sector,but the distribution is very uneven.The Chinese government begins to pay special attention to the industry orientation of service FDI,encourages foreign investment in higher value-added services.It is of great theoretical significance to study the relationship between service FDI and the internal structure of service industry,and how to make better use of the service FDI to promote the optimization of the internal structure of service industry.The development in service industry and the ability of attracting foreign investment have large differences in different regions.Shandong province is China's important industrial province,for a long time,the service industry is the economic short board.During the "12th Five-Year Plan" period,Shandong Province promoted the transformation and development of service industry as the strategic focus and main direction of economic transformation.The service industry has shown a good momentum of expanding the overall scale,accelerating the growth rate,optimizing the industrial structure and internal structure.However,the service industry in Shandong Province still has many problems compared with other provinces.In particular,the internal structure of service industry is unreasonable,traditional service industry accounts for a large proportion,and the development of modern service industry is lagging behind.These questions must be addressed.As a relatively high-quality domestic resource,service FDI can bring advanced technology,management concepts and other aspects of support to the service sector in Shandong Province,so as to promote the expansion of the scale of service industry in Shandong Province,and influence the internal structure of service industry.This paper studies the relationship between service FDI and the internal structure of service industry in Shandong Province from the perspectives of theoretical analysis and empirical test.This paper is divided into six chapters.The first chapter is the introduction,including background and the significance,methods,content,innovations,etc.The second chapter is the literature review,which reviews the domestic and foreign literature from the following two aspects:the service FDI and economic growth of service industry,the service FDI and the internal structure of service industry.The third chapter is the analysis of the development of the service industry and service industry in Shandong.The fourth chapter is the mechanism analysis,which is the core theory of this paper.It explains the mechanism of service FDI optimizing the internal structure of service industry from the following three aspects:capital filling effect,technology spillover effect and income demand effect.The fifth chapter is the empirical analysis,select the relevant data of Shandong Province from 1993 to 2015,through the Granger causality test and the establishment of conduction model for the mechanism of testing,concluded that:service FDI in Shandong Province is the one-way Granger cause of the optimization of service internal structure,and mainly through technological progress and income needs to promote the optimization of the internal structure of service industry,capital effect is not significant.The sixth chapter is the conclusion and policy Recommendations.Firstly,it summarizes the conclusion based on the analysis of the whole paper,and puts forward the corresponding policy suggestions accordingly:optimize the foreign investment environment and attracting more service FDI;strengthen the service industry according to the development demand Industry-oriented efforts to increase investment in education,training high-end service industry talent;improve urban and rural residents disposable income,accelerate the transition to a higher level consumption concept.