| Globalization is an important trend of the world’s economic development. ForeignDirect Investment closely relate to China’s economic development and economicrestructuring. The utilization of foreign direct investment not only solve the problem ofshortage of funds in the period of our development, but also bring some advancedproduction technology, management methods, fierce market competition and resourcesharing. From1979, when China becomes reforming and opening up, the utilization offoreign direct investment grew rapidly; the investment environment has been greatlyimproved. Most of FDI concentrated in the eastern coastal area, middle and westernregions obviously lagged behind. The data used in this paper comes from ChinaStatistical Yearbook, Statistics Compilation of New China60Years, China ForeignTrade Yearbook and Provincial Statistical Yearbook. Based on different conditions ofour regions, the paper select GDP, level of market, turnover volume of goods, laborproductivity, stock of FDI, level of urbanization and preferential policies, using spatialeconometric model, do the empirical analysis on influencing factors, such as market,cost, agglomeration and policy, of our use of FDI, and then make effective suggestions.In accordance with the development of our country, China’s foreign directinvestment can be divided into four phase: initial phase (1978-1991), the rapidexpansion phase (1992-1997), the stagnation phase (1998-2001) and high-speeddevelopment stage (2002-present). In the initial stage, most of FDI comes from HongKong, Macao and Taiwan. They are always short-term investment concentrated in thesoutheast coastal region, showing small amount and low quality feature. Since DengXiaoping speech in South In1992, China’s reform and opening up is in full swing. Atthe same time, the use of foreign direct investment has been developed rapidly. 1992-1997, the use of foreign direct investment expanded significantly, the projects ofFDI reached262,318, the actual utilization of foreign direct investment is almost$196.8billion, and an annual growth rate of FDI is beyond30%. The field of foreigndirect investment gradually expanded from the original industrial manufacturing tofinance, insurance, trade, tourism and some other industries. In1997, Asian financialcrisis severely affected the economic development of China’s neighboring countries,foreign capital flows in our neighbor countries show plummeted. To a certain extent,this incident had a negative impact on China’s use of foreign direct investment, thescale foreign direct investment reduced apparently. China’s utilization of foreign directinvestment goes into stagnant. With the gradual weakening of the Asian financial crisis,our country joined the WTO formally in2001, the use of foreign direct investment notonly out of the state of stagnation, but also entered into a stage of high-speeddevelopment.2002-2009, China’s direct use of foreign direct investment rose from$52.743billion in2002to$91.804billion in2009. In2002, China becomes thecountries with the largest foreign direct investment in worldwide.From the inter-provincial level, regional level and the shift track of the FDI focuslevel, the paper do the deep research in the evolution of regional distribution of foreigndirect investment in China. Firstly, since the reform and opening up of our country, theproportion of foreign direct investment has been changed in different province. Foreigndirect investment began to spread from the eastern coast province to inland province.Among them, Guangdong, Hainan and Fujian provinces have a larger decline; Beijing,Shanghai, Hubei provinces are in a slight decrease; Liaoning, Tianjin, Jiangsu,Zhejiang, Shandong and other four provinces are showing a clear upward trend.Secondly, from the perspective of the three regions in our country, the gap of FDIbetween eastern and middle, western regions has been gradually reduced, but stillshowed an obvious disparity. By the end of2009, the direct use of FDI in the eastern,middle and western regions respectively accounted for a total of77.39%,13.33%,9.28%. Thirdly, the center of gravity of China’s foreign direct investment has long-term deviation from the geographical center of gravity(103.5degrees east longitude,36degrees north latitude), it move toward the northeast on the whole, which is closelyrelated with the order of our country’s reform and opening, the regional developmentstrategy and regional development conditions.This paper selects seven variables indicators, such as GDP, level of the market,the turnover volume of goods, labor productivity, foreign capital stock, level ofurbanization and preferential policies, and analyzes the factors influencing on regionaldistribution of FDI from market, cost, agglomeration and national policy aspects. Theanalysis showed that: firstly, from the country’s situation, the use of foreign capitalstock, GDP and cargo turnover and FDI are positively correlated, the level ofurbanization, labor productivity, the level of market-oriented and FDI are negativelycorrelated, preferential policies and FDI are not significantly correlated. Secondly,from the eastern of China, the level of urbanization, foreign capital stock, the turnovervolume of goods, preferential policies, GDP and FDI are positively correlated, themarket-oriented level, labor productivity and FDI, a negative correlation. Thirdly, inthe middle area, foreign capital stock, GDP and FDI exist a positive correlation, thelevel of the market, labor productivity, cargo turnover and FDI are negativelycorrelated, the level of urbanization, preferential policies and FDI related notsignificant. Fourthly, in the western region, GDP, foreign capital stock and laborproductivity and FDI are positively correlated, the turnover volume of goods and FDIare negatively correlated, the level of urbanization, the level of the market andpreferential policies, and FDI in the correlation is not significant.In summary, the impact factors exert a different influence on various regions ofour country. In the eastern of China, market level, the level of urbanization and laborproductivity have a large influence on FDI; in the middle, the foreign capital stock andGDP’s elasticity coefficient is largely related to FDI; and in Western region, GDP andinfrastructure construction have a great impact on FDI. Both in middle and western inour country, level of urbanization and preferential policies on the use of FDI was not statistically significant. Accordingly, this paper presents the point that, concerning theuse of FDI, different areas face different problems, and the measures should be takenaccording to their own conditions of development and the development status. |
PDF Full Text Request