Empirical analysis of Zhejiang FDI and services development

Foreign Direct Investment (FDI) can promote the level of services development, which is important symbol of economic and social modernization. It has been making great contributions to the development of service industry during the past decades in China. This paper will use stability analysis, co-integration and Granger causality test to investigate the relationship between FDI and the development of Zhejiang´s service industries, and give proposals on promoting the development of service industry.