Study On The Optimization Of Foreign Direct Investment Location And Investment Environment In Hunan Province

China, which has absorbed foreign direct investment (FDI) 535. 05 billion dollars in 2003, became one of the most FDI absorption countries in the world. Hunan province, absorbing FDI 1 018.35 million dollars, is 1.92 % of that of the whole county and situates the twelfth, only less than Jiangxi province and Hubei province in the inner continental provinces of the Centre. What locational factors have influenced on absorbing FDI in Hunan province? Why could Jiangxi province and Hubei province absorb more FDI than Hunan province? How should Hunan province optimize the location and investment environment in the new situation? This paper will give some answers to these questions.Based on the existed researching experience, taking the location theory, the theory of international direct investment and the theory of industrial organization as basic theories to study the FDI location, the paper applies the regression model and the gray correlation to analyze the foreign direct investment location in Hunan province from city-scale and province-scale.The result shows that the function of the same locational factors to FDI is not quite identical in different spatial scale. To the City-scale in Hunan province, economic scale, market capacity, cumulative FDI, financing capability, industrialization level, globalization level and well geographical location have obvious promoting effect on FDI increasing. Whereas, the promoting effect of science development capability, informatization development degree, labor cost, infrastructure situation and urbanization level on FDI increasing are not obvious. The investment environment of this province can be compartmentalized to four grades. Only Changsha situates the first grade. Zhuzhou, Xiangtan, Chenzhou and Yueyan are in the second grade. Changde, Hengyang, and Loudi are in the third grade. Yiyang, Yongzhou, Huaihua, the A. P, Zhangjiajie and Shaoyang are in the forth grade.To the province-scale of Xiang, E and Gan, financing capability, economic scale, market capacity, labor cost and geographical location are...