Research On The Influence Of China's Service Industry's FDI On Export Technological Sophistication In Services

In contemporary world,the rapid development of digital economy has a profound impact on the foreign direct investment(FDI)and the situation of global trade in services.The scale of global service industry's FDI expands rapidly,the development of trade in services is increasingly extending to the high-end of global value chain,and countries around the world pay more attention to the promoting of the quality of trade in services.The concept of export technological sophistication in services provides a favorable research tool for research on the technical connotation and added value of a country's exports of trade in services.With the deepening of China's reform and opening up,the service industry's FDI develops rapidly,while the technical connotation and added value of exports of trade in services needs to be improved urgently.For that reason,this paper makes a systematic and in-depth theoretical analysis and empirical research on the influence of China's service industry's FDI on export technological sophistication in services.Based on the view of host country,the paper constructs a theoretical analysis framework of the influence of service industry's FDI on export technological sophistication in services,which systematically expounds the mechanism and its specific promotion path of the influence of service industry's FDI on export technological sophistication in services in theory.At the same time,this paper analyzes the current situation of China's service industry's FDI,using EXPY model to calculate China's export technological sophistication in services,making an in-depth analysis of the changes in China's export technological sophistication in services from two aspects of overall and sub-level,and making a comparative analysis with some developed countries and "BRICs".It is found that the level of China's export technological sophistication in services has a big gap compared with some developed countries,it also lags behind India,Russia and Brazil in the "BRICs".The upgrading of China's export technological sophistication in services has a long way to go.Based on the theoretical analysis,this paper uses the research method of "fromgeneral to special",making empirical analysis of transnational panel and China's empirical analysis of the influence of service industry's FDI on export technological sophistication in services from the transnational level and China's perspective.The results of empirical analysis of transnational panel show that service industry's FDI has a significant positive effect on export technological sophistication in services,that is,the spillover effect of service industry's FDI on export technological sophistication in services is greater than that of crowding out effect.The results of China's empirical analysis show that service industry's FDI has a positive effect on export technological sophistication in services,that is to say,the spillover effect of China's service industry's FDI on export technological sophistication in services is greater than the crowding out effect.However,the positive effect is not significant due to the possible short time sequence.Based on the results of empirical test,combined with the actual situation of China,the paper puts forward following suggestions to promote China's export technological sophistication in services from three aspects.First,optimizing the structure of China's service industry's FDI.Secondly,accelerating the development of high value-added international service outsourcing by making full use of service industry's FDI.Furthermore,promoting positively the comprehensive and diversified strategy of deepening export technological sophistication in services.