Study On Location Selection Of Foreign Investment In Textile Industry In China

Foreign investment is one main important form of international capital's running. It's very important for a country or an area's economic development. From our reform China has gained great progress in utilizing foreign capitals and now China is the biggest Amphitrite on country in incepting foreign investments. At the same time, foreign investment is becoming indispensability power for China's economic increase and social development. Our China is the biggest manufacturer and export country of textiles in the world, while our country is also the biggest customs market of textile clothes. The foreign investors are always interested in dry goods area especially at the early days of reform, many foreign investors preferred textiles and clothes programs in China. But the foreign investments in our country's textile business is very imbalance, the textile business in east area accounts for more than 90% in making use of these kind of foreign investments, while the Midwest occupies less than 10%. Why could this status happen? Which factors decided the foreign investors' section choices? Which advantages do these sections themselves have? And how much are these potentials? How to improve the environments of investment to attract more foreign capitals? All these puzzles are the questions which we will answer in this text.There are so many researches about foreign investments, but the Western mainstream theories about international investments section choices using "corporation" theory instead of "industry" theory while actually "corporation" and "industry" are two different conceptions. Corporation is the main body of microcosmic investments; its investing process is achieved during internal and overseas competitions and mainly resting with the competition abilities of the microcosmic economic organizations themselves. "Industry" is adjusted by market mechanism while is also guided by the policy of investors' country and Amphitrite country. It is obvious that the sections choice of international direct investments is not absolutely lying on the marketable competitions. The main purpose of the corporation's investments is to occupy the Amphitrite country's product or service markets through multinational straight investments, also to ensure the high corner profits of corner companies. And from the aspect of industry, it not only satisfies the high profits pursues of multinational it also must increase the industry in home, so as to drive the persistent increasing of whole country economy. At the same time, existing researches mainly focus on theoretic discussing, policy analyzing ect. To much better know and utilize foreign investments in textile aspect and better establish interrelated policies, demonstration researches about foreign investments are very necessary.Establishing the section theory and foreign straight investments theoretic, the text includes a great lot of statistical data and a suit of index system about textile industry in every section attract foreign investments, tests the status using measure model, multi-analysis ect, and also appraises about every section's environments of investments. There is clear evidence that economic size, openness, and the level of marketization have played important roles to affect the location of FDI; In contrast, the effect of marketization has increased; Labor cost have played negative roles to attract the location of FDI; government policy hasn't taken into effect in absorbing FDI. At the same time, we found that the location factors in textile between east region and central and west region are difference, we must analyze separately.The paper consists of six parts. First part introduces the background of the topic, and discusses the research of FDI by the economists home and abroad; the second part discusses the total condition of FDI in textile industry in China; the third part discusses the economics of MNEs and the theory of location. The fourth part discusses the location determinant factors of affecting textile industry foreign investment. At the fifth part, Some policy suggestions will be given for east and central and west region on textile industry how to attract foreign investment. The last part comes to conclusion and discusses the research prospect.