Research On FDI Location Choice Of Electronic Information Manufacturing In China

Since the 1990 s, China’s foreign direct investment is growing rapidly, by the end of 2015, China’s cumulative actual utilization of foreign capital has already reached $1.8461 trillion, exceeding the scales of the United States, becoming the first number in the world of attracting foreign investments. But since the 2008 global financial crisis, China’s foreign investment growth has obviously dropped, before the crisis the chain relative ratio of actual use of foreign capital is 21.6%, after the crisis the ratio has reduced to 0.83%. To the manufacturing sector, which decreases the most, the actual use of foreign capital is 245.25 billion yuan, the year-on-year basis has reduced 12.3%. Among all the manufacturing sectors, the actual use of foreign capital of the electronic information manufacturing industry accounts for the largest, up to 37.74 billion yuan, following the decline trend of the whole manufacturing industry. After the crisis, no matter the scale or the quantity of the electronic information manufacturing industry’s foreign investment have decreased significantly. Due to the limitation of development level of the Chinese economy and our science and technology, the products of Chinese electronic information industry are standardized and can be mass produced. So most of our electronic products export to European and American markets, and as the global OEM factory, our electronic information industry located in the lowest end of the global industrial chain. Southeast Asia, India and other countries with rich labor resources are alternative to undertake this part of Chinese global industrial chain status. The study of the main factors influencing FDI location choice of the electronic information manufacturing industry of our country after the crisis is of vital significance for reducing the withdrawal and the transfer of the foreign capital and the transformation and upgrading of the electronic information manufacturing industry.This thesis use 11 years of Chinese 30 provinces and cities (except Hong Kong, Taiwan, Macao, Tibet) in 2002-2012 of electronic and information manufacturing data, using fixed effect panel model, selecting average wage of manufacturing workers, land cost, human capital, infrastructure, marketization, openness, industry supporting capacity indicators, comparing the main location factors before-and-after crisis and the different factors among Chinese east central and western regions of foreign direct investment of this industry. The final results show that electronic information manufacturing industry gross outputs, cumulative of foreign capital, infrastructure, human resources have important influence on the industry. For the East central and western regions, the respective location factors are different, the central and western regions are mainly affected by human resources, infrastructure and foreign capital agglomeration factors, whereas the eastern regions are mainly affected by wage, foreign capital and industry supporting factors.In conclusion, combining with the central and western regions’location advantages, actively guiding foreign investments transfer to the central and western regions, has the vital significance for Chinese industrial transformation, upgrading, and factor structure adjustment.