Research On The Influence Of Foreign Direct Investment On The Agglomeration Of China's Service Industry

With the deepening of China's opening-up strategy,foreign direct investment has gradually shifted from the traditional first and secondary to the service industry,and the direct investment in the service industry will attract the affiliated enterprises to relocate to the nearest local enterprises and form the service agglomeration area.In the past,the research rarely involves the influence of FDI factors on service industry agglomeration in the service industry,based on the theory of industrial agglomeration such as new economic geography,this paper analyzes the influencing factors of FDI in service industry,and constructs the conduction mechanism of the influence of foreign direct investment in service industry on service industry agglomeration,From two aspects of the whole service industry and the subdivision service industry,the influence of the service industry FDI on the service industry agglomeration is deeply analyzed.Based on the spatial Gini coefficient,location quotient and regional average concentration index,the paper calculates the level of service agglomeration in China from the angle of industry and region,and further understands the development and actuality of the service industry agglomeration in our country,which is also one of the innovation points of the article.This paper studies the influence of FDI in service industry on the service industry agglomeration in China,and mainly draws on the Wang Jingjing,Zhangchangbing(2015)in the H-O model and the new Economic Geography Framework,expand the Amiti(2005)model,the service sector into the analysis framework,reference Oulton(2001)Approach to model revision analysis,it is concluded that trade liberalization has an impact on service industry agglomeration,while foreign direct investment in service industry is an important carrier of commercial existence mode service trade.Therefore,foreign direct investment in service industry has an impact on service industry agglomeration.In this paper,the foreign direct investment in the service industry is regarded as the core explanatory variable,the influence factors of the new service industry agglomeration are introduced to establish the theoretical model,and then the relevant data are collected to analyze the relativity between the service industry FDI and the service industry agglomeration in China.From the analysis of industry and region,the relationship between the FDI in service industry and the agglomeration of service industry in our country is concluded,on the basis of which,combined with the above theoreticalmodel,we use the STATA12 statistic tool to establish the econometric model using the 2004-2015-year industry panel data,and use the "fixed effect regression" Methods The empirical regression analysis was carried out on the influencing factors of service agglomeration in China.Considering the fixed effect regression can not fully depict the distribution of industrial agglomeration,however,"the regression of the number of digits" can analyze the different influence of the FDI of the service industry on the service industry agglomeration under the different position of the conditional distribution,and provide more comprehensive information,and then use the method of "the number of digits regression" to carry on the regression,Through the theoretical and empirical analysis to draw the following conclusions:First,the influence of FDI in service industry on service industry agglomeration is significant,and the effect of FDI in producer service industry is significant and higher than that of service industry as a whole,The influence of FDI on consumer service industry and public service industry concentration is not significant.Second,the results of the regression show that with the increase of the number of points,the coefficient of FDI in the service industry is positive and the value is increased,the inflow of the foreign-invested enterprises in the service industry is more important to the agglomeration of the high agglomeration degree,and the function of the service is not obvious.Based on the critical stage of deepening the reform in our country,in order to cater for the 19 industrial policy,we should better implement the policy measures of the supply-side structural reform,optimize the economic structure more comprehensively,adjust the spatial distribution of industrial economy more healthily,and study the agglomeration of our service industry.It is of great theoretical and practical significance to explore the influence of FDI in service industry on the agglomeration of service industry,and to promote the agglomeration of our industries,especially the service industry,and to promote the transformation and upgrading of national economy.Finally,according to the analysis results,the corresponding policy recommendations are put forward.