A Study On The Impact Of FDI On Sophistication Of China's Service Trade Export

With the development of the world economy,"service economy" is playing an increasingly important role in the world economy,among which international direct investment is an important driving force.Since the reform and opening up,China's service trade has developed rapidly,and FDI is a major driving force for the growth of China's service trade.Although China's service trade has made great progress in recent years,China's service trade is still in deficit for a long time.One of the important reasons is that the sophistication of China's service trade export is at a backward level in the world.In order to change this situation,China should actively use international capital and foreign direct investment to increase the sophistication of China's service trade export,which would strengthen China's international competitiveness in service trade.This paper analyzes the mechanism and path of FDI influencing the sophistication of service trade export.FDI has both positive and negative effects on the sophistication of service trade export,and FDI affects the sophistication of service trade export in direct and indirect promotion path,which lays a theoretical foundation for the following development analysis and empirical analysis.Then the EXPY model is proposed to measure the sophistication of service trade export.Based on EXPY model,this paper analyzes the current situation and changes of the sophistication of China's service trade export,and makes an international comparison from the general perspective trend and sector structure.Finally,this paper conducts empirical analysis on the impact of FDI on the sophistication of China's service trade export from the perspective of transnational and China.Both transnational panel empirical analysis and time series empirical analysis show that FDI has a significant impact on the sophistication of China's service trade export,which means the positive impact FDI has on the sophistication of China's service trade export is stronger than its negative impact.Based on the empirical results and the actual situation of China,this paper puts forward countermeasures and Suggestions to improve the sophistication of China's service trade export,which are divided into the enterprise level and the government level.The enterprise level includes developing high-quality service outsourcing and increasing the research and development of service technology patents.The government level includes actively attracting FDI,improving the openness of service trade and optimizing the development environment of the service industry.