Research On Influencing Factors Of FDI In Producer Service

The economy in China is in a stage of transition from high-speed growth to high-quality development.So accelerating the development of producer services and promoting the interactive integration of producer services and manufacturing are important measures to transform its economic development mode and cultivate new momentum for economic growth.However,there is a big gap between the development level of producer services and the same industry in developed countries.Therefore,it is necessary to improve the level of opening up of producer services to the outside world and increase the inflow of producer services FDI.However,producer services FDI currently has external threats of declining global enthusiasm for international investment,as well as internal problems of the unbalanced investment structure of industry sectors.This article mainly studies the differences of economic and institutional factors influencing the overall production service industry and the FDI inflow of sub-sectors in different regions of China through statistical,comparative and econometric analysis methods.Exploring to further enhance the ability of producer services to attract FDI is the problem that this article attempts to solve.First,this article starts from the current situation of FDI in producer services and analyzes the inflow scale,industry distribution,and location distribution of FDI in producer services from 2006 to 2017.It is found that although the scale of FDI absorbed by producer services has exceeded the scale of FDI absorbed by the manufacturing industry,the rate of foreign investment has slowed down year by year,and the scale of FDI inflows in different producer service sectors varies greatly.The location distribution of producer services FDI varies greatly,and most producer services FDI flows into the eastern region.Secondly,based on the international production compromise theory and the new economic geography theoretical basis,combined with the current status of producer service FDI,the factors affecting the inflow of producer service FDI are discussed.The economic factors summarized in the theoretical part include economic scale,Infrastructure,manufacturing FDI scale,urbanization level,labor cost;and institutional factors affecting indicators mainly include the degree of opening to the outside world,marketization degree,industry concentration,and education level.Thirdly,the relevant statistics of 12 indicators in 16 provinces and cities with different development levels of service industry from 2006 to 2017 are used.Empirical research on the panel fixed-effect model of the overall FDI inflow of producer services and the FDI inflow of various sectors of producer services was conducted respectively.The empirical analysis of the differences in the effects of influencing factors on the FDI inflow of different sectors of producer services.The results obtained through quantitative analysis are basically verified with the proposed hypothesis,but at the same time,it is found that there are significant differences in the influencing factors of FDI inflows in different producer service sectors,mainly manifested in the fact that FDI in the transportation service industry has a strong effect on the scale of FDI in manufacturing.Path dependence,the relationship between FDI and infrastructure in the information service industry is contrary to expectations,FDI in the financial industry is significantly positively correlated with the level of urbanization,business service industry is significantly negatively correlated with industry aggregation,and scientific research service industry is significantly positively correlated with regional education Related.Labor costs and market openness have different roles for different producer services.Finally,from the perspective of overall producer services and sub-sectors,put forward policy recommendations to expand the FDI of producer services.The recommendations for the overall producer service industry are to expand the market demand for producer service industries,focus on the cultivation of industrial specialized talents,and strengthen the role of FDI agglomeration in the manufacturing industry;by improving infrastructure such as transportation and attaching importance to the role of policy guidance Improve the attractiveness of foreign investment in transportation and business services;increase the inflow of foreign capital in information,finance,and scientific research services by promoting the formation of industrial cluster externalities,coordinating the relationship between industry and manufacturing,and deepening market-oriented reforms.