An Analysis Of Determinants Of Foreign Direct Investment In China

Since late of 1970's, FDI in China(FDIC) has increased progressively year by year. After China had ranked the first place of FDI inflow recipients in the world, determinants of FDIC has became one remarkable topic. Based on the theory of FDI and results of the existed research, this paper conclude those factors that may attract FDIC and use multi-variable line regression equation to examine factors, only those who can pass the exam could be regarded as determinants that have the obvious function regarding the attraction of FDIC. This paper divide the determinant into three categories: income determinants, efficiency determinants, risk determinants, and examine developed countries and developing countries and regions respectively. Finally, based on the previous research of this paper, we give some recommendations that are efficient to control the FDI inflow volume and can improve the unreasonable distribution of outflow countries.