Analysis Of The Mechanism And Determinants Of Investment Diversion

The investment diversion is the behavior that investors pursuit the profit in other areas or other professions and enterprise.it is the result of enterprise position space adjustment,the adjustment depends on the policy, take the cost-income as the criterion and take the direct investment as the main form. through the multiplier effect, the connection effect, the technical overflow effect, the economic growth effect, the investment diversion can promote the level of local resident's income.It is become people's mutual recognition that speeds up the step of investment diversion,in order to attract more capital, it is necessary to analyze the determinants of investment diversion.Before making the research,firstly we need to understand why there are the investment diversion phenomenon, what are the barriers of investment diversion, what areas and professions does the investment diversion choose in reality. after carrys on the elaboration of the process about the above questions.the article proposed the investment diversion mechanism.Afterward, take the predecessor research results as the foundation, overcomes insufficiency by uses multiple regression analysis method, such as the mix regression model,the fixed effect model, the random effect model, take 218 city's data as the sample, make an deep research about the determinants of investment diversion by using the structural equation model. The result indicated that the cost of labor does not have the negative influence to investment, which is not in accordance with people's imagination.but the market and the industrial foundation variable, the external environment variable make positive influence to the amount of investment diversion. Based on the empirical analysis result, finally the article presented some related suggestions and points which worth to be make further study in the future.