The Impact Of Service Industry FDI On The Service Trade Competitiveness In China

With the continuous development of the global economy,the development of the service industry has gradually become a pivotal position.With the service trade,it has become another important international economic activity besides commodity trade,and will also become the focus of future global market competition.China’s service industry has developed rapidly with the expansion of economic globalization worldwide,attracting more and more foreign investment in services,from 111.9 billion US dollars in 1996 to 13 billion US dollars in 2017,expanding 10 times.China’s FDI pattern is gradually dominated by the service industry.At the same time,the world ranking of China’s service trade rose from 12 th to 2nd,second only to the United States,and service trade has developed rapidly.In the 35 years from 1982 to 2017,the total import and export volume increased from 4.7 billion US dollars to 678.3 billion US dollars.However,China’s service trade has been in a deficit state,and its trade competitiveness is still insufficient,but there is a gradual upward trend.The competitiveness of service trade has a crucial impact on the future economic and trade development of a country.The transformation and upgrading of China’s service economy is imperative.Therefore,it is of practical significance to study the impact of FDI on trade competitiveness from the perspective of service industry.In view of this,this paper first analyzes the development of foreign investment in China’s service industry based on the overall scale and industry structure of China’s service industry FDI,and analyzes the development status of China’s service trade competitiveness from the service industry segments;On the basis of the development trend,the comparative analysis of China’s service trade competitiveness with Japan,the United Kingdom,India and the United States will provide a comprehensive analysis of the status of China’s service trade competitiveness.Then,based on the analysis of the status quo of the two,a simple statistical analysis of the impact of FDI on the competitiveness of service trade,there is a positive correlation between the two.In theory,this paper first analyzes the impact of FDI’s knowledge technology spillover effects including horizontal spillover and vertical spillover effects,and then analyzes other factors affecting the competitiveness of service trade based on diamond model,including production factors,demand conditions and related industries,and corporate strategy.In terms of structure and competition;in terms of evidence,this paper selects industry panel data from 2000 to 2016 to study the impact of FDI on China’s service trade competitiveness from two aspects of the overall and sub-industry nature.The research results show that on the whole level,China’s use of service industry FDI can significantly promote the competitiveness of service trade,which is an important factor,and the traditional service industry FDI has a more significant role in promoting;while other factors are in different industries.There are some differences.The input of the basic elements of per capita fixed assets in the production factors can promote the competitiveness of China’s new service trade with knowledge and capital intensiveness.The human capital endowment factor is in China as a whole and in different industries.Service trade competitiveness has a significant role in promoting,while the effect of technological innovation input factors is not significant.The demand income variable has a negative impact on China’s service trade competitiveness.The openness of service trade and the development of service industry have a significant positive effect on the improvement of China’s service trade competitiveness,and the effect in the new service industry is significant.Finally,based on the previous analysis,this paper puts forward several policy recommendations for improving the competitiveness of service trade in China: optimizing the FDI investment structure of service industry;increasing the fixed asset investment of service trade;increasing R&D investment and personnel training,and further opening up China’s service industry market.