Analyses On The Genesis Of FDI Disparity Among Different Regions

Since the end of the 1990s, the foreign investments of Zhejiang Province have been developed fast, but they are very uneven to distribute among the areas. This proves that position factor affects the direct foreign investment great. From the appraising system of commercial cost and internationalized degree, based on the position theory of international investment, we can see the index difference, configuration difference and dynamic change among areas comprehensively, aftei researching and analyzing extensive data. Then this thesis draw a conclusion that comprehensive commercial cost and export-oriented degree of the location are the determinant effects of FDI distributing in Zhejiang Province. Comprehensive cost of commercial including direct and indirect cost of commercial. Direct cost of commercial divided into five parts: labor cost, level of consumption, factor cost, tax and cost of expense. It is in state of imbalance in Zhejiang, but has comparatively limited controlling to a certain extent. Indirect cost of commercial divided into two parts: infrastructure and soft environment for investment. Relative to direct cost of commercial, to have a better control of indirect cost of business helping to achieve maximize welfare. It is also the direction in which Gov. must labor mightily.This study proposes that Zhejiang should grasp the chances of Shanghai —the international metropolis and CHANGJIANG DELTA—the hot international investment area, to upgrade local economy outward. To develop FDI of Zhejiang Province averagely,the key is to guide the developing areas to reduce the indirect commercial cost effectively, instead of the direct commercial cost, to create a efficient government affair airs instead of favourable policy and to factor configuration cost instead of single factor cost.