The Location Selection Study Of Japanese Direct Investment In China In Different Stages

Japan is our close neighbour. It is the second biggest economic country in the world and it has very close relationship with China in economy and trade . At the beginning of our open to the world, its scale of investment to China is the first of all the other countries. By the end of 2005, if, according to the amount of really using foreign investment, it is just after Hongkong among all thecountries which have invested in China.In Japan, the main industries to make direct investment in China are those which have been in an inferior position. The locations the Japanese investors choose to invest in China are decided by their motives and the conditions which can meet their expectations to get good benefits. The changes of all kinds of location factors in different parts of China, such as the time to be open, the preferential policies ,the economic developing standards, have made the Japanese investors invest in different areas. What have the Japanese investments experienced ? Which locations have the Japanese enterprises chosen ? What are the main location factors which have effected the Japanese direct investment in China ? What are the changes of location factors in different stages of Chinese economic development ?This paper is based on International Direct Investment Theory, Location Theory, International Trade Theory and other related theories. It's discussed by using theory analysis, empirical analysis and cases research. At first, we set forth the location problems of Japanese direct investment in China and its meaning of research , introduce the main subject the paper will specialize in , its structure and the way to research. Secondly, we summarize the intension about locations via the theories such as International Direct Investment, Location Theory and International Trade Theory .We also summarize the present situation in foreign direct investment research and the research survey especially on Japanese enterprises investing in China. Then, we look back the direct investment Japan has made in China and its state to choose the locations. According to these, we start with the main location principles , trace out the decisive location factors, combine the location motives Japan invests in China , counter the location choice in different stages and the changes of location factors, then analyze them separately to get the theory analysis conclusion. In empirical analysis, we make the empirical analysis by countering the different economic quotas of the nine provinces and cities in the eastern area of China where Japan has mainly invested and some Japanese datas. After having sieved all explanatory variables, we fix and set the measure model, then we make regression analysis. Finally, we get the important location decisive factors which have effected Japanese investment in China in different stages. This paper also combines the fixed important location factors to make further analysis by analyzing the typical case of Japanese direct investment in China.Meanwhile, we look into the tendency Japan will invest in China in order to give useful policy suggestions to introduce the funds from Japan.