Study on the Coordination Degree Between FDI and Modern Service Industry Development in Shenzhen

Abstract

Foreign direct investment (FDI) is an important driving force for economic development. In the period of rapid development and growth of Modern Service Industry (MSI), whether FDI had any impact on it was not clear. Through selecting some indicators form scale, structure and performance, this paper constructs the “FDI-MSI” coordination degree evaluate model. Based on the data of foreign direct investment (FDI) and modern service industry (MSI) collected from Shenzhen, the development coordination degree between foreign direct investment (FDI) and modern service industry (MSI) was estimated in 2010–2018. Research results show that the foreign direct investment and the modern service industry are generally coordinated in Shenzhen, but the overall level is not high. The structure of foreign capital is not reasonable, and the current inefficiency in the use of foreign capital by the service industry is the main reason. In the process of utilizing foreign capital in the future, Shenzhen should strengthen the guidance of foreign investment with the goal of modern service industry development, create a favorable environment for foreign capital to flow into modern service industry, and promote the coordinated development of foreign capital utilization and modern service industry.