Analysis Of The Impact Of China's Outward Foreign Direct Investment In Service On The Export Of Service Trade

After joining the WTO in 2001 and implementing the strategy of “going out”,the pace of Chinese outward foreign direct investment(OFDI)is increasing gradually,which has change the strategy from“Bringing In” to “Going Out”.In the domestic development of “New normal of Chinese economy” and the external implementation of the " The Belt and Road" strategy environment,the service industry has become the main driving force of China's economic development.In recent years,service industry has developed rapidly and the pace of China's service industry OFDI has gradually increased,while China's total services exports has also grown rapidly,which has caused much attention.The main problem of this paper is:(1)whether the growth of China's outward foreign direct investment in service promote development and international competitiveness of China's trade in services exports.(2)How should China optimize China's outward foreign direct investment in service so that it can better promote the development of China's trade in services exports.Research on the subject of this paper,through the study of the previous literature,we find that the relationship between outward foreign direct investment and trade export forms three main theoretical perspectives: substitution,complementarity and long-term relationship.The paper finds that China's outward foreign direct investment in service and China's trade in services exports have long-term promotional effect and the role of different industries is different.Empirical part of the paper,the application of Granger causality test results with each other unidirectional causal relationship between China's outward foreign direct investment in service and trade in services exports,followed by application of VAR model impulse response function derived mechanism of action and the time period between the final application gray correlation analysis of China's outward foreign direct investment in diverse service industries analysis.Finally,after analyzing the empirical results of this article,we put forward the suggestion of optimizing the structure of OFDI in service and promoting the competitiveness of service trade export.