Evolution Of The Shandong Province Foreign Investment Equity Model And Empirical Analysis

Along with the economic globalization in the world and the gradual perfecting of marketing environment in China, more and more Multinational Corporations (abbreviated to MNCs in the latter part) are targeting China as one of their major markets. As the most attractive investment destination country at present, China has attracted much more investment of MNCs than other countries. Owing to her excellent economic and social environment, Shandong province has been the third province among those of China that attract most of the Foreign Direct Investment (abbreviated to FDI in the latter part)for four years since 2002.And the increasing FDI has made more and more contributions to the economic and social development of Shandong province. But a propensity needs to be concentrated that wholly foreign funded enterprises have become a dominant part of foreign funded enterprises in Shandong Province.The phenomenon that most of the MNCs have adopted the wholly foreign funded equity mode in current China has attracted great attention from Chinese scholars as well as foreign ones. However most of the scholars have focused on China as a whole, such as Li Wei'an, Li Baoquan and Huamin etc. Few of them paid attention to regional studies, such as research on Shandong province. Meanwhile the researching methods of case analysis and gross empirical investigation were employed most frequently or some certain variable was taken into consideration such as the foreign investment origin by domestic scholar Lu Tong. The author tries to explain the propensity in Shandong province by empirically analyzing the effect on the propensity of such variables as the foreign investment origin, the investment zone, the investment industry, the investment scale and managing efficiency and so on.Based on the previous literature on FDI ranging from the motivation of MNCs to the factors from which their investing equity modes might form, the author puts forward an eclectic framework made up of several variables. With the above...