ABSTRACT

Previous studies focused either on revealing the correlation between services FDI and manufacturing, or the correlation between services trade and economic growth in China theoretically. Few empirical studies has been done to test the relationship between services FDI and manufacturing for

1 INTRODUCTION

1.1 Related literature

As the services industry play more and more important role in world economy with the trend of services FDI increasingly shifting from manufacturing toward services and the trend of increasing growth rate of services trade in the world, more and more scholars focused their research on the links between services FDI, services trade and manufacturing production.