How Location Factors And Investment Motives Impact On FDI Decision

With entry into WTO of China and the implement of West development strategy, FDI in China will gradually realize the important strategy adjustment to transfer to the west of China step by step. Investment location factors and investment motives have been the key factor of modern abstracting investment and foreland issues in the domain of FDI theory research.The experimental research of this paper is firstly based on the comprehensive appraisal on FDI theories and methods, and a series of assumptions on the relationship between investment location factor, investment motive and investment decision will be put forward,Secondly, the regression and factor analysis model of FDI will be established according to the assumptions, after that, questionnaire will be designed according to the research contents; generally speaking, designing the items will confer to relative documents in the light of the fact of research targets. Thirdly, SPSS will be used to identify and explain factors, factor analysis KMO test, reliability test; Amos will be used to test structural equation. The experimental research results have shown that location factors and investment motives have impacted on the investment decisions positively, therefore, the assumptions have been demonstrated reasonable. The five dimensions of location factor include basic input factor, market factor, production cost factor, deal expense factor, comprehension factor, and the five dimensions of investment motive include cooperation & technology factor, risk evasion factor, benefit & market factor, competition factor, resources factor. All these illustrate that FDI in the west of China will be due to diversity-dimension motives. With the development of west of China, the investment environment and market mechanism will be gradually perfect, and it must be the activist factor for abstracting FDI. At the same time, the cheaper investment cost will still maintain its important effect on FDI. Foreign and domestic scholars have employed many aspects research with descriptive and estimatable measurements, but until today, few researches have employed one experimental model to study investment location factors, investment motives and investment decisions at the same time. Therefore, this paper will not only supply a new direction and new case for FDI theory research, but also scientific base for formulating abstracting-investment policies and optimizing-environment measurement by government, in order to eliminate disadvantageous factors, strengthen advantageous factors and promote abstracting investment work actively. The investigation sample—German medium and small enterprises, will mainly consult Chongqing city as the imaginative investment target region to answer the questionnaire. The research result will help every development zone in Chongqing formulating abstracting investment policies greatly.