An Empirical Study On The Influence Of Foreign Direct Investment Environment On FDI Decision

On the ground of economy globalization, Foreign Direct Investment (FDI) has become the important factor in the country's development. Investors are always basing the investment location decision on which this location can bring them most profit. As the investment always exits in the specific region, investors should evaluate the region's investment environment, which will impact the investment profitability. When China joining WTO, Chongqing should improve the investment environment to attract FDI more efficiently as the important city in the West China. So it is developed that the researches about the relationship between investment environment and FDI. We can divide these papers into two groups: one is using linear or nonlinear models and economical statistic data; the other is using questionnaires to get the information about the companies' investment motives and location factors. In this paper, we study the relationship between environment and FDI by way of structural equation model and questionnaire investigation.At first, we summarize the former papers and the theory basis about the investment environment research; meanwhile the general studying ways of investment environment is summed up. Then we establish items structure to evaluate the investment environment on the basis of previous study and use the questionnaires to get the original data from the foreign companies in Chongqing. Because the items are relative, we analyze the data by Principle Component Analysis and abstract the main factors finally. In order to find out the relationship between investment environment and investment decision, we use Amos.Finally, we find that the economy environment, institution environment touching on the company's daily operation, infrastructure environment, law and policy environment will affect the investment decision positively. Meanwhile we find the characteristics of the investing companies will affect the relationship between the environment factors and investment decision. That is, to the companies with different characteristics, the environment factor's impact on decision will be different.According to the result, we put forward advices to improve the investment environment in Chongqing.