A Research On Location Choice Of China’s Outward Foreign Direct Investment

Under the call of “going out” strategy, Chinese enterprises carry out outwardforeign direct investment actively.2002-2010, china’s outward foreign directinvestment has made great progress, increasing from$2.7billion to$688.1billion.Until the end of2010, china has established16000foreign enterprises in178countries (regions), the cumulative net of outward foreign direct investment got to$317.21billion, ranked17in the world.This paper summarizes western classic foreign direct investment theories andrelated researches about china’s outward foreign direct investment, on this basis,analyze the motivation, location distribution and its changes of china’s outwardforeign direct investment comprehensively by the <<2002-2010Statistical Bulletin ofChina’s Outward Foreign Direct Investment>>; Based on china’s outward foreigndirect investment stock in32countries and host country’s economic variable data inthe year of2003-2008, with Unit root tests and Single-line regression analysis, Studythe main factors that affect the location choice of foreign direct investmentempirically; Analyze the location distribution characteristics of foreign directinvestment by Gravitational coefficient and point out the problems of Location choice.On the basis of both theoretical and empirical study, put forward relevantdevelopment suggestions for china’s outward foreign direct investment from aspectsof government promotion measures and enterprise’s own strategies.