An Empirical Study On The Spillover Effect Of Foreign Direct Investment In Service Industry

With the deepening of economic globalization,FDI(foreign direct investment)has gradually become one of the main driving force of developing countries to improve productivity,and the "service economy era" has coming,accompanied by an increase in FDI of the service department,service industry plays a more and more important role in foreign investment.Since China's entry into WTO in 2001,the entry restrictions on foreign investment in service industry have been gradually relaxed.Though the FDI in China basically flows to manufacturing industry at the very beginning,with the development of FDI in service industry,it has surpassed manufacturing industry for the first time in 2011,and has become the main force attracting FDI.In recent years,the FDI of service industry in China has developed rapidly.In 2015,the amount of FDI in service industry was 81 billion 138 million dollars,and the proportion of the service industry was 64.26%,far more than that of manufacturing industry.The service industry FDI can bring a package of knowledge,technology,marketing and management experience for the host country,which is very beneficial to the development of the host country's service industry.Therefore,a systematic study of the FDI spillover effect of the service industry and its sub sectors and influence factor of industry level,providing some suggestions for the service industry to attract foreign investment,which has important theoretical and practical significance.Based on the understanding of FDI development situation of the service industry in China in recent years,a large number of research results are summarized,and put forward hypotheses according to the relevant theoretical basis.Econometric model was constructed scientific for measurement of service industry FDI spillover effects,the measurement and analysis of the FDI spillover effect in service industry is carried out by using the panel data of the 14 sub industries of China's service industry for 2005-2015 years,the horizontal,backward linkage and forward linkage spillover effects of the overall FDI in China's service industry in recent years are discussed,and exploring the heterogeneity of spillover effects of sub sectors of the service industry.In addition,the technical level and capital density are selected as the two industry characteristic variables,exploring influence factor of FDI spillover effect in service industry.Finally,according to the results and conclusions of the study,some suggestions on attracting foreign investment in service industry in the future are put forward.This thesis mainly draws the following conclusions: First,the horizontal and vertical spillover effects of FDI in China's service industry are exist,and the horizontal spillover effect is significant positive;as for the vertical spillover,backward linkage effect is significantly positive,forward linkage effect is significantly negative.Second,in the three spillover effects produced by FDI in the service industry,the backward correlation spillover is a more important spillover approach.Third,there is a heterogeneity between the FDI spillover effects of sub industries in the service industry.Fourth,the technical level and capital intensity,as industry characteristic variables,have significant positive effects on the FDI spillover effect of service industry.And then some suggestions on the future attracting foreign investment in the service industry are proposed: First,optimize the investment environment and formulate a reasonable policy of opening to the outside world.Second,pay attention to independent innovation and narrow the technological gap between domestic and foreign enterprises.Third,to strengthen industrial relations and to pay attention to cooperation between domestic and foreign enterprises.