A Research On The Location Competition In The Attraction Of Foreign Direct Investment In China

With the development of economic globalization and regional integration, Foreign Direct Investment (FDI) conducted by transnational corporations has gained considerable momentum, which also becomes an important research topic in the field of international economics. As the inflow of FDI in China grows fast, China has become the top country that attracts the largest amount of FDI. However, the location of FDI demonstrates obvious asymmetry due to the imbalance of economic development among different regions in China, and there is fierce competition in the attraction of FDI. Therefore, it is a pressing issue to guide the rational allocation of FDI in different regions of China in order to promote the prudent and coordinated development of the regional economy.From the point of the recipient of FDI, this thesis places the competition in attraction of FDI in China as the research target. The goal of the thesis is to figure out the location factors affecting the distribution of FDI by means of empirical study on the basis of related research findings at home and abroad; build up the competition game model to reflect the competitive measures in the absorption of FDI; then put forward the regional competition strategy for attracting FDI enlightened by Porter's diamond model. Finally, it makes constructive suggestions to regulate and improve the spatial allocation of FDI in China.The thesis consists of six chapters: Chapter one introduces the research background, research target, intention and implications. It also makes a brief introduction of the research findings already achieved by Chinese and foreign scholars and summarizes the main thoughts and ideas in the following chapters. Chapter two identifies the location features of the inflow of FDI in China. It illustrates the overall development of FDI in China, differences in the location distribution and the local competition in the attraction of FDI. Based on other relevant findings, an empirical study has been carried out to select the influential factors as regards the location imbalance in the allocation of FDI, laying a sound foundation for the following research. Chapter Three tries to build up the location competition model for attracting FDI. After an exploration for the incentives for the absorption of FDI in different regions in China, using the method of game analysis, it establishes a competition model to reveal the influence of major measures to attract the inflow of FDI and makes an analysis of the effects of regional competition in attracting the inflow of FDI. Chapter Four provides a regional competition strategy for attractingthe inflow of FDI. Enlightened by Porter's competitive advantage model, it creates a model to reflect the competition strategies for different regions to involve in the competition of attracting FDI. Then it describes the basic patterns, competitive advantage conditions and different stages to implement the specific competition strategy. Chapter Five starts with a case study of Changjiang Delta to do an empirical study of the location competition in attracting the inflow of FDI. Using related data of the utilization of FDI in Yangtze Delta, it carries out a deep exploration of the competition in absorbing FDI in the regions. Chapter Six concludes the whole thesis and proposes several countermeasures and suggestions for the guidance of the orderly competition of attracting FDI. Finally it points out the innovative ideas in the thesis and other issues needed to be further studied.