| FDI as the contact of economy in heterogeneous culture, no doubt the culture is an influence factor worth to be attached. At present, there are different views on whether, what and how the impact of culture factors to FDI in the academic world. Those discussions are most based on identification of theory and experience, but less of positive analysis. So this article will try to make scientific analysis about this subject from standpoint of positive analysis.In this article, we first do theoretical analysis, when other things being equal, investors tend to invest the country which cultural difference is smaller with its homeland. Then choosing 52 countries which have more investment in China from 2000 to 2005, I establish an econometric linear model which contains culture, then using the panel data make a regression analysis for this model. Through the result of regression, we can find that the index of cultural difference on behalf the culture is a negative correlation with the FDI. This results show that culture is one of the important effects of FDI; furthermore, the more difference between investing country and host country, the less amount of investment. After then, using the investigation of other scholars for reference, we analyse that culture influences on foreign direct investment of investing mode and distribution. On one hand, the result of binary logistic shows: when the cultural difference between the homeland of foreign-funded enterprise and our country is greater, the probability of choosing joint venture is smaller. On the other hand, choosing Guang Dong and Shang Hai as investigating object, we analyse that culture influences on FDI distribution.After analysis, we can find that culture is one of the important factors of effecting FDI distribution. Finally, according to the above-mentioned analysis, we will make the recommendation of related policy in order to attract more foreign investment to and better use of foreign investment. |
