Research On The Location Choice Of Foreign Direct Investment In Tianjin

In the shadow of global financial crisis triggered by the United States credit crisis, the global economies have suffered varying degrees of combats. However, sound financial policies, solid economic foundation and government expanding measures have minimized the impact to China. Because the profit of subsidiaries in the United States and Europe have been declining, giant multinational companies are paying more attention to China. Furthermore, the level of foreign capital for China has been the first for 17 years among developing countries. The regional difference on foreign direct investment reflected Tianjin's regional environmental characteristics and advantages of resources. As the important economic center of the North, Tianjin has achieved some famous in attracting foreign investment. Therefore, the study of foreign direct investment and how to improve the conditions have important practical significance.In this paper, the integrated use of direct international investment theory, theory of multinational corporations, regional economics, the new economic geography, theoretical research and empirical research would measure some choices on the foreign direct investment in Tianjin. Using the location theory papers and foreign direct investment theory, the paper analyzes the determining factors of foreign direct investment in Tianjin. After empirical research, the article gives some suggestions about how to improve the investment environment to attract more international direct investment in Tianjin.This article holds that the foreign direct investment in Tianjin is the result of the various factors, specifically the level of GDP, the turnover volume and the third industry. Therefore, improving the investment environment, enhancing the GDP of Tianjin and upgrading the level of development of the third industry would attract more international direct investments in Tianjin.