PROGRESS IN GEOGRAPHY ›› 2012, Vol. 31 ›› Issue (4): 498-509.doi: 10.11820/dlkxjz.2012.04.014

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A Literature Review on FDI in the Service Industry

ZHU Yangang1,2, HE Canfei2,3   

  1. 1. Shenzhen Graduate School of Peking University, Shenzhen 518055, Guangdong, China;
    2. College of Urban and Environmental Sciences, Peking University, Beijing 100871, China;
    3. Peking University-Lincoln Institute Center for Urban Development and Land Policy, Peking University, Beijing 100871, China
  • Received:2011-05-01 Revised:2011-09-01 Online:2012-04-25 Published:2012-04-25

Abstract: Dunning's eclectic theory of international production is generally recognized a paradigm to explain foreign direct investment. However, this paradigm mainly focuses on manufacturing FDI, which might be not applicable to FDI in the service industry. With the fast growing of the ratio of FDI in service industries, researches on services FDI have become a new focus of economics, management and geography. This paper makes a detailed review on the theory development of service FDI by integrating both traditional FDI theories and trade theories. It analyzes the features and international models of services FDI and makes a comparison between services FDI and manufacturing FDI. Besides, it makes a review on the status of the development of services FDI and systematically introduces factors affecting the location choice of FDI in the service industry. Finally, this paper summarizes the researches on services FDI in China and predicts the prospect of the trends of services FDI in the future research.

Key words: literature review, location, services FDI