Study Of Influence Of China's Ofdi On Domestic Service Agglomeration

China's outwards foreign direct investment(OFDI)has grown rapidly and in 2016,the flow ranked second in the world.The impact of OFDI on home country's economic has become a hot issue.In view of the related literature,research on the impact of OFDI on industrial agglomeration is still very few.Considering that under the backdrop of global economic restructuring,China is also faced with the problem of service industry development and the agglomeration is a new trend of the development of the service industry.Therefore,systematically exploring the effect of OFDI on service industry agglomeration has a certain theoretical and practical significance.Based on the existing literature research and the related theories of service industry agglomeration,this paper clarifies the mechanism of OFDI on service industry agglomeration from the three dimensions: promote the service industry by improving service industry demand and weaken the role under the high agglomeration level;through the reverse technology spillovers to improve the technical level to promote agglomeration;to promote the agglomeration by improving the labor supply and changing employment structure of the service industry.The empirical test uses the provincial panel data of China in 2005-2016.In the empirical study,Solow residual value and service labor force are taken as the mediators of the two effects,and the effect of quantiles on the level of agglomeration is explored.The main conclusions are: First,the increase demand induced by OFDI for service industries in home countries will directly promote the service industries agglomeration.This effect will decrease with the increase in the level of agglomeration,that is,the role of outward direct investment is more important in areas with a lower degree of agglomeration.Second,the employment effect of OFDI can promote the employment of the manufacturing industry,thus reducing the labor supply of the service industry.This effect indirectly inhibits the agglomeration of service industries in the region;the impact on the productive service industry and the consumer service industry is similar.Thirdly,the impact of the reverse technology spillover effect of OFDI has a relatively large industrial difference.Compared with the consumer service industry,technique level has a stronger positive effect on agglomeration of producer services.Thus OFDI's reverse technology spillover effect can significantly promote agglomeration of producer services,and has a weak inhibitory effect on consumer service industry agglomeration.Finally,according to the conclusions this paper put forward four policy recommendations: Encourage OFDI to promote the service industry agglomeration.Develop measures based on the level of regional service industry agglomeration.Develop measures based on the unreasonable path and the industry characteristics.Choose reasonably industrial priorities in accordance with local conditions.