Analysis On The Location Choice Of Foreign Direct Investment In China

With economic globalization process accelerating and China mainland area of deepening reform and opening in China, foreign direct investment in the mainland significantly accelerate the pace. China mainland area has replaced the United States as the absorption of foreign direct investment, the most regions. But enter China's mainland area of foreign direct investment in regional distribution and industry distribution is a huge imbalance and quite part of the foreign direct investment into China mainland area is because China's mainland area capital market exists serious distortion creates. Foreign direct investment in China's mainland area shows, reflects the regional difference of direct foreign investment in China mainland area each main regional environmental characteristics and the selective use resource advantage. The national economy in China, the foreign direct investment has occupied a very important position, and continue to attract foreign direct investment in order to promote the economic development of our country is also a must. In order to solve past the utilization of foreign direct investment, and the problems existing in current China's foreign direct investment in order to provide scientific basis for the policy, it is necessary on the basis of the existing research further study foreign direct investment location selection factors.This paper comprehensive use of international direct investment theory, regional economics and economic geography and related knowledge, take theory research and empirical research method of combining study, discusses the foreign direct investment location selection problem, the traditional FDI expand decision model. Through the theoretical research and empirical studies, this paper argues that the foreign direct investment location choice is the result of joint action of various factors affecting, sums up foreign direct investment location choice, namely, the main factors market potential and the level of economic development, infrastructure status, labor factors, foreign economic conditions and the level of opening-up, preferential policy factors, geographic location factor, capital markets, and level of distortion of these factors is empirically analysed. Test results show that in addition to the individual factors (infrastructure condition), the majority of selected factors of foreign direct investment in China has important influence on the location selection. Therefore, reasonable adjust our mainland area of foreign direct investment policy and promote industrial fusion can effectively guide the foreign direct investment flow and beneficial to China mainland area of the economy coordinated development and financing system reform and eliminate distortion of the capital market of our country to the healthy development of economic long.