The Study Of FDI Spatial Distribution In China

Since German scholar Thünen proposed the agricultural location theory, the issuethat how to choose a location that is beneficial firm to gain the maximum economicinterests become one of the focus in academic circles. In pace with international directinvestment action deepened, scholars launch extensive research on its motives. One ofthe most important is the basis of FDI location decision. Although the uniformedlocation decision has not formed yet, the studies of enterprise location decision inspatial distribution of industry theory and the location thought in FDI theory are oftheoretical and realistic significance to location decision. In order to go further in thelaw of FDI spatial distribution, numorous scholars have carried out empirical studiesbased on different investment and host countries. Most of studies on an internationalscale that use firm level and host coutries level datas regard host coutry ashomogeneous region. But the situation of FDI spatial distribution are more complexdue to the malconformation of economic development in China. This dissertationdiscussed the mechanism of FDI spatial distribution main factors in China, and triedto verify the effect of factors from multiple perspectives,and then demonstrate thefactors that can attract FDI in different regions from theoretical and practical level.According to above all, put forward policy suggestions that continue to improveinvestment environment and attract high quality FDI for policy maker reference.First, the theory of spatial distribution of industry and FDI and relevant literaturesfrom domestic and oversea has been reviewed and classified systematically, andpropose the mechanism of factors of FDI spatial distribution in China. FDIdemonstrates spatial heterogeneity under the influence of policy, market, cluster andsocial eviroment in China. Government attracts and restrains FDI by carrying outopen policy that includes spatial admittance, market admittance, industry admittance,preferential and restriction policy, combines with universality policy that includesadjustment of demand and supply structure, and improvement of protection measures.Market demand scale and market vigour can reflect consumer preferencesheterogeneity that lead to FDI industry heterogeneity and FDI spatial distributionheterogeneity. Cluster can attract FDI by synergistic effect and positive externaleconomy. And negative external economy of cluster may bring extrusion effect to FDI.Additonally, FDI self agglomeration can improve region cluster level and formcircular and cumulative system. The government service efficiency, cultural and geographical environment and urbanization level can roduce centripetal force andcentrifugal force to FDI as the most important factors.Secondly, this dissertation reviewed and discuss the evolution course, evolutiontrend and spatial distribution of FDI in China. Since China began to utilize FDI in1979, there are three stages, include primary stage, rapid expansion stage and steadilyadjustment stage. With the advancement of three stages, China continous to improvemeasures that guide and standardize FDI. On amount aspect, the proportion of soleproprietorship has increased and joint venture has declined; the industries of FDIdemonstrates diversification trend, and most of FDI is part of secondary industry andtertiary industry, and there are large differences of FDI in different industries; thesource of FDI demonstrates diversification trend and relatively centralized, FDI hassteadily rised. On FDI spatial distribution aspect, FDI has significantly increased in allregion, and there is large differences among regions. This dissertation provided theFDI gravity coordinates by calculated from urban level over the years. This result candraw conclusions that FDI in urban shows strong agglomeration features in eatencities and major cities of regions in region view; and shows dispersibility in nationalview.Thirdly, according to mechanism explanation and situation analysis, thisdissertation selected and used relavent panel datas, built the theoretical model andverified the influence factors on the effect of the spatial distribution of FDI in Chinaempirically. Study based on252prefecture–level and above cities during2002-2011period on four perspectives, included and integrity area, period of time and integrityarea, full period and regions, and full period in different development levles. Througha detailed empirical verified, the result showed that preferential policies and all kindsof the open policies will not attract FDI, and universality polities become more andmore important to FDI attraction; FDI firms begin to improve requirements of labourforce quality, the attraction of cheap and low-quality to FDI has not obvious; andagglomeration level is still an important factor in attracting FDI; and trade barrierproduces negative effect to FDI.Finally, according to the principle of theory and empirical results, this dissertationaimed at how China in geographical location and economic development level ofdifferent regional sustainability attracting FDI policy recommendations.