Service trade, FDI in service industry and wage level in China’s service industry: an empirical analysis based on industrial panel data

ZHANG Zhi–ming1 CUI Ri–ming2

(1.ZHANG Zhiming)
(2.Economy Department, Liaoning University)

【Abstract】Using the industrial panel data, from three dimensions including the whole services, different industrial technical standards and business registration types, this paper analyzes the impacts of service globalization factors, such as service trade and foreign direct investment, on the service wages and its mechanism in China. The study finds that the impacts of importing and exporting in services on the wage level is on the whole significantly positive, while that of the foreign direct investment (FDI) on the whole is significantly negative. The overall impacts, direct impacts and indirect impacts of service trade and foreign direct investment in services on wage levels of China’s service industry have the heterogeneity of enterprises and industries. The extent of the overall impacts of service trade and foreign direct investment in services on wage levels and whether the impacts are positive and negative are determined by the interaction between the direct and indirect impacts.

【Keywords】 services import; services export; FDI in service industry; wage level in service industry;


【Funds】 Major Project of National Social Science Foundation of China(14AZD017) Key Research Institute Project of Humanities and Social Sciences of Ministry of Education(14JJD790021) Youth Scientific Research Project in Liaoning University Project of the Asia Research Center of Liaoning University in 2015 Sponsored by the Health Management and Innovation Center of Universities in Liaoning Province

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(Translated by WANG Ran)


    [1]. ① The five medium-high-tech industries cover information transmission, computer service and software industry, finance, scientific research, technology service and the geological investigation industry, the entertainment business and the rental and business service industry; the five medium-low-tech industries cover transportation, storage and postal business, accommodation and catering business, the real estate, public management and social organization service, the rental and business service industry. [^Back]

    [2]. ② Data sources and processing in this paper refer to Zhang (2014). [^Back]


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This Article


CN: 11-1692/F

Vol , No. 08, Pages 33-42

August 2015


Article Outline


  • 1 Introduction
  • 2 Modeling and data specification
  • 3 Empirical analysis
  • 4 Conclusion and policy implications
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