Research on the Impact of FDI in China on Bilateral Service Trade Flow——an Empirical Analysis Based on Service Trade Gravity Model
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Research on the Impact of FDI in China on Bilateral Service Trade Flow——an Empirical Analysis Based on Service Trade Gravity Model
SHU Yan1, LIN Long-xin2
1.School of Economy and Management, Guangzhou University of Traditional Chinese Medicine, Guangzhou 510006, China; 2.College of Information Science and Technology, Jinan University,Guangzhou 510632, China
Abstract Based on the panel data of the bilateral service trade and FDI of China and the 19 OECD countries and regions between 2000 and 2008, the paper analyzes the service trade effects of FDI in China by extended gravity model . Empirical research results indicate that FDI in China promotes the development of service trade. But the stock of FDI promotes service trade greater than FDI flows. Furthermore, FDI promotes service trade imports greater than exports. The size of bilateral trade flow is positively related with each partner’s economic development and commodity trade, and the openness of host country’s service trade can promote export of service trade. But the relative distance constitutes the hindering factor to the bilateral trade.
SHU Yan,LIN Long-Xin. Research on the Impact of FDI in China on Bilateral Service Trade Flow——an Empirical Analysis Based on Service Trade Gravity Model. Economic Survey, 2013, 1(4): 071.
2013, Vol. 1 
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