Research on Foreign Direct Investment in Service Industry

Shaanxi Normal University, Xi’an, China

^a Corresponding author: 2861018266@qq.com

Abstract

Under the national policy goal of increasing labor income and increasing employment rate, the service industry is expected to be a powerful engine for stimulating economic growth, optimizing industrial structure and absorbing employment, while foreign direct investment is playing an important role in promoting industrial upgrading and improving efficiency. This article first analyzes the trade effects of multinational companies in the service industry based on monopolistic advantage theory, product life cycle theory, internalization theory and the eclectic paradigm of international production, and then introduces the development status of foreign direct investment in China’s service industry. The study found that under the premise of ensuring the national economy and social security, corresponding policies should be adopted in the introduction of investment in specific industries to correctly guide the flow of foreign capital so that it can serve to optimize the industrial structure of the service industry.