An Empirical Study On Locational Determinants Of FDI Inflows

In recent years, FDI locational problems are a very important research subject in international academic circle. It absorbs relative study achievements of locational theory, FDI, multinational investment theory, industry organization theory etc. Although a great number of documents discuss this problem, up to now, it does not have the normal theory on explaining the distribution of FDI location, it only exists in industry locational theory, industry organization theory, international trade etc. From the current study achievements, eastern areas in FDI are higher than western not only in quality but also in quantity. But form our country enters WTO on, attract for investments in western areas has best opportunities. On this background, this theory chooses the key location to comparative study of JiangSu and GanSu province on investment environments, also study which factors determine FDI inflows in JiangSu and GanSu province, and think a lot of which factors. It not only has the academic meanings, also has the significant application valve. it will improve the ability of FDI attraction of GanSu also the western areas, so it also has the practical meanings.This paper combines the theoretical analysis with the empirical studies, history with logical to study the economic effects of importing FDI. On the basis of comparing the various economic theories and reviewing correlative research, we construct the theoretical framework of this paper. Then comparison on locational determinants of JiangSu and GanSu province from different angles. We based on theoretical framework we build econometric models, through stat. analysis SPSS12.0,using the method of OLS to have the data analysis. An empirical study on geography location, economic development level,infrastructure,focus economics,human capital, open level, town level and market leveléclat but not the least, it also disuses why FDI in GanSu province is low,and put forward the policy and suggestion.