Analysis On Factors Affecting FDI In China's Central Region

Since the reform and opening-up in 1978, China began to attract foreign direct investment. China's progress and policies to attract FDI has obvious "progressive" characteristic, forming a "special economic zones - the coastal open cities - open areas - inland areas" of the opening of the time sequence and spatial pattern. By 2003 only, FDI into China about 85% are concentrated in the eastern coastal areas, as China's economy more open and "Rise of Central China" policy to guide, FDI began to appear the tendency to spread to the central region, about 10% of FDI into the central region. Therefore, this article seeks to study FDI influencing factors in the central region, from the theoretical and empirical analysis of the central region to seek to attract foreign investment response.This article first examined the system at home and abroad on the FDI location choice of the research results, as well as conducted these results in-depth analysis and discussion,laying a theoretical foundation for empirical analysis of this paper; Second, this article analyzed the status of FDI in central region from the actual use of foreign capital,enterprise-scale structure of foreign investment and overviewed the conditions of attracting FDI; Then by 2000 to 2007 of the original data collection,collation and analysis in six provinces of central region, Selected 22 indicators, used econometric analysis on the central region factors affecting FDI. Based on the results of factor analysis, 22 indicators are grouped into five common factors; they were Technological and market factor, production and transaction efficiency factor, human resource factor, structure factor, concentration and scale factor. According to the five common factors in scoring position, found that six provinces of the central factors in the five categories each have their own characteristics. Continued to do regression analysis about these five common factors, found that five common factors significantly affected in varying degrees. Technological and market factor, production and transaction efficiency factor, concentration and scale factor positive, human resources factor not significant and negative, Structure factor negative; The last light of the above theoretical and empirical analysis, proposed practical policy recommendations.