Foreign Direct Investment, Regional Change And Its Causes,

Since the reform and opening up, China has achieved fruitful results in attracting foreign direct investment (FDI). However, the distribution of FDI in China is uneven, with the vast majority of which concentrated in the eastern coastal areas. In recent years, the location of FDI has undergone significant change, from south to north and from east to west. Empirical analysis shows that the average wage of workers, land price, per capita GDP, the total retail trade volume of consumer goods, transportation volume of cargo and highway mileage do affect regional FDI distribution. Because there are big differences over time in the investment environmental factors across the three areas and seven regions, the distribution pattern of FDI is also changing. Only further improving the investment environment of all regions in China can we guide foreign investment to form a rational regional distribution structure.