The Analysis Of Location Competition For Attracting FDI In Different Areas Of China

With the dramatic development of economic globalization and regional integration, Foreign Direct Investment (FDI) conducted by transnational corporations has gained considerable concerns, which also becomes an important research aspect of world economy. 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 shows 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 real 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 sets 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; then put forward the regional competition strategy for attracting FDI enlightened by Porter's diamond model. Finally, it tries to make constructive suggestions to regulate and improve the allocation of FDI in China.The thesis consists of five 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. Chapter Three provides a regional competition strategy for attracting the inflow of FDI. Enlightened by Porter's competitive advantage model, it creates a matrix 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 Four starts with a case study of Yangtze Delta to do an empirical study of the location competition in attracting 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 Five 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.