This study was set out to identify the linkages between FDI, institutional\nchange, employment and services growth in megalopolises in China. We\nchoose the four super cities in China, Beijing, Shanghai, Guangzhou and\nShenzhen, take government interference and openness as the proxy variable\nof institutional change, based on Douglas production function and using data\nfrom Year 2006 to 2017, we investigated the relations between FDI, institutional\nchange, employment, and services growth with fixed effect panel data\nmodel. Findings show that FDI presented a significant positive impact on the\nservice economic growth of the four megalopolises, while the number of employees\nin the service industry has a negative effect on the growth of the service\nindustry, which is contrary to the common sense; With respect to institutional\nchange, openness presented a strong positive effect and effect of government\nintervention is not significant; the cityâ??s fixed investment and R & D\ninvestment of service sectors also presented an unclear effect.
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