The Analysis On Influencing Factors Of Location Decisions Of Technology Sourcing Foreign Direct Investment In China

Some evidences show that many MNCs conduct outward foreign direct investment in order to get near or acquire high technology of host courtry, while the exist of reverse technological spillover effect is the premise of these direct investments with the purpose of acquiring technology. During recent years the high technology is getting more and more significant in the fields of primary industry, manufacturing and service industy. Technology Sourcing FDI is becoming an effective way for some developing countries to acquire R&D resources of MNCs, which make increasing enterprises in developing countries to invest in many developed countries. For most of Chinese companies, TSFDI is an obviously effective way of enhencing core competitiveness, promoting industries upgrading and becoming global advanved MNCs.There are two directions of the domestic and foreign researches on the technology souring FDI:first, possibility of the technology souring FDI; second, the effect of the technology souring FDI——the existence of the reverse spillover. At the present day there is not any general theory with regard to the Location Choice of international direct investmen. However, the issues about location choice are more or less found in some main stream FDI theories, such as OIL theory of Dunning and Small-scale Technical Theory of Wells. Meanwhile, researchers in China have conducted a host of meaningful research which, however, have not formed a systematic and perfect theory framework, and contains little research towards location choice and determinants of TSFDI. Currently in China the research about location choice stays at a low level which only elaborate the current situation and reasons instead of systematic empirical study and verifying process.This paper, based on the foreign and domestic researches, will analyze the location determinants of TSFDI of Chinese enterprises. In part III, the paper analyze theoretically the features of Chinese TSFDI at present and location determinants of TSFDI; in partⅣ, by using empirical method the paper study the relevant determining factors of Chinese TSFDI; in partⅤ, this paper recommends several proposals from government and enterprise point of view in the hope of strengthening the absorptive and embedding capacity of Chinese enterprises, and improving the domestic spillover mechanism.