Study On The Location Choice For Chinese Forestry Foreign Direct Investment

Chinese forest resources quantity is less, uneven regional distribution and low utilization rate of trees. Since the implementation of protection engineering, countries began to stop and limit cutting of forests,timber supply in China. As the demand of market for timber products increases year by year, and people’s demand for ecological environment protection rises,the gap of supply and demand for timber is sharply,and it has become the bottleneck of Chinese forestry economic development.In this background,through the international markets for timber resources become the important way to alleviate the contradiction between supply and demand of China’s timber,while forestry foreign direct investment is one of the highest forms for realizing this approach.First of all,this study analyzes outward direct investment of Chinese forestry,state of (Chinese) wooden forest products trade,and the characteristics of industrial development and finds that China is the world’s largest importer of lumber. but timber imports are vulnerable to influence and restrict by the host country policy,especially the trade protection policy and economic factors and the risk of external. Therefore through implementing the strategy of foreign direct investment, the host country forestry cooperation of equality and mutual benefit and outside the development and utilization of forest resources,not only can effectively avoid the trade barriers,deal with the shortage of resources and excess capacity,reduce dependence on imported timber,guarantee the sustainable supply of wood and stability,but also can help with advanced foreign technology and expand the market, to realize the sustainable development of forestry. Finally,using the panel data to verify the import easily affected by the host country risk factors,through the way of resource type to seek foreign direct investment can avoid import risks. Therefore this study regards the resources for the forestry enterprise as the research object, analyses its foreign direct investment location choice problem. Secondly, it considers comprehensively the influence factors of foreign direct investment location choice from the perspective of "the trinity". Including investor policy; enterprise’s internal factors, such as investment motivation, the production scale, flexibility and production technology level, etc.; the host country’s political environment, economic environment, cultural environment, natural environment, geographical environment and other factors. Only when the three unite fit can make full use of the comparative advantage of enterprises and the host country of the location advantage obtains the best investment benefit.Again, this paper analyzes the characteristics of foreign direct investment for the forestry of resources pursuing, and then according to the characteristics of investment to forest resources, economic, and political variables as foreign direct investment location choice of forestry research variables chooses the variable quantity and select the research object with exporting the amount of exports to China’s of logs, which the world’s most log rank in the top50in30countries, evaluate the risk status of these countries using the method of principal component analysis and logit model and the risk assessment results, After conducting synthetically,it compares the current situation of Chinese enterprises in overseas business of woodland and the risk assessment results. Results show that this research on resources for enterprises investment location risk assessment results is reasonable,and can be used as the basis of location selection.In addition,by analyzing the distribution of foreign direct investment on forestry in Chinese enterprises location characteristics and the empirical analysis of the influence factors of location selection, it can be fond that Chinese enterprises is focused on the foreign direct investment in countries with high country risk or locations which are mostly developing countries. Thus we can sum up the forestry the behavior characteristic of foreign direct investment location choice is that forest resources as the guidance, preference in lower cost of location, the main focus of neighboring countries in Asia, Africa and North America, Canada.Finally, in view of Chinese foreign direct investment location choice of forestry problems,the essay puts forward the optimization path. First, investment geographical concentration degree is high and the risk is bigger. Second,forestry enterprise itself and the government also has some problems. Suggestions for the existing problems are from two aspects of macroscopic guidance and corporate behavior to optimize investment location and guard against risks.