Research On The Influence Factors Of MNEs' Location Choices Based On The NEG

With the production internationalization, trade and investment liberalization, commodity globalization, capital and market globalization, multinational enterprises have largely controlled economic activities, such as the international trade, international investment and technology transfer. Multinational enterprises have gradually become one of the most major forces which affect the world economy. The development of multinational enterprises shows the following characteristics: Multinational enterprises'globalization strategies want to get the lowest production costs and the highest sales price, and on this basis to get more market shares and higher profits. To achieve this target, they have to cooperate or merger with other enterprises; Multinational enterprises' R&D activities become more globalization and internationalization; Investment destinations are still developing countries; Cross-border alliances are the major forms which multinational companies take to expand overseas; Taking these forms'target is mainly to use advantages of each other, expand business scopes and seek development through cooperation.China is the biggest host country of FDI in developing countries. On the one hand, it is necessary for China to maintain long-lasting appeals and cohesions to FDI, to attract more and more foreign investment to promote economic growth; On the other hand, China's enterprises should implement the "going out" strategy to compete with foreign enterprises in international markets. Therefore, we should use a new perspective and analytical framework to find further evidences of the analysis results with a different approach. As an important branch of economics, the new economic geography is a good method to study the location of multinational enterprises with hypothesizes of monopolistic competition, economies of scale and transportation costs.New economic geography discusses the nature of economies of scale, transportation costs, factor mobility, input-output linkages and their interactions through the space explanation of DS model. Because of the unique path dependence of agglomeration, the degree of industrial agglomeration will be much higher under the condition of global integration, the price of local production factors and commodity will tend to raise. Therefore, the imperfect mobility of local production factors and goods will make multinational enterprises transfer their investments. Under the condition of economies of scale, industrial agglomeration and economic growth will change with transport costs. Therefore, the new economic geography provides a new theoretical framework and perspective to study the location of multinational enterprises.In this article, first, we will review the relevant theories and literatures of the new economic geography; then, we will study their impacts on the multinational enterprises location choices from the fundamental and market segments respectively; and next, we use the data of 29 provinces of China (except Chongqing and Tibet) for the empirical text; At last, we will give the results and relevant policy recommendations.