The Research on the Interaction between the Development of Trade in Services and the Chinese Service Industry Use FDI

Since our country joining the WTO, Chinese service industry use FDI and the trade in services take on the synchronous trend of growth. In order to study the relation between them, in this paper we mainly analyze the principle of the interaction between service industry use FDI and the development of trade in services, also we study the generating ways for them, then point out that service industry mainly through the form of commercial presence and cross border supply promote the development of service trade directly, besides, the technical effect, employment effect and the capital benefits promote it indirectly. At the same time service industry makes use of FDI play an alternative role in service trade, and service trade would play a positive role in promoting the service industry use FDI. For further proving the mutual relationship between them, we use some index for the vector auto regressive (Var) analysis. These index include FDI used by service industry(FDI), service trade(TES), employee in service industry(SPE), the social fixed assets investment in service industry(SINV), the added value in service industry(SAVL) and so on.)