Research On Foreign Direct Investment Location Choice Of Chinese Bauxite

With the rapid development of economic globalization and the continuous practices of the government’s "going out" strategy, China’s bauxite companies has been paying more and more concern on the overseas investments. Going abroad and obtaining first-hand bauxite resources through direct investment in the country or region which has bauxite reserves has far-reaching impact on the development of China.The main content of this paper was to research the influencing factors of foreign direct investment in the field of bauxite and the investment environment of the country or region which has bauxite reserves, on the basis of the learning about the location theory of foreign direct investment. One of the most important parts of this paper was the researching of the affecting factors. And in this part, based on the descriptive analysis of factors affecting the location choice and the dynamic model of investment flow, it showed that price differences caused by geographical factors, investment in indirect costs caused by geographical factors and demand for exogenous shocks had a significant impact on bauxite investment flows. And then for bauxite reserves in Australia, by the establishment of the multiple regression model between the bauxite price and location factors, the paper found that the labor costs, transportation costs, mineral resources, existing and potential productive capacity, social infrastructure, the level of economic development, labor quality and availability of the power had a more significant impact in bauxite investment location choice than the sea freight. Another key part of the paper was the investment location factor analysis. In this part of the study, a comprehensive study on the investment environment of the alternative bauxite reserves of the country or region and the environment analysis of the alternative bauxite reserves based on the factor analysis were conducted. And thanks to the research mentioned above, this paper divided all the alternative bauxite reserves into three categories, such as the proposed investment areas, the key investment areas and the areas avoiding investment. This paper completed the analysis of the influencing factors in the areas of the bauxite investment for oversea and the research of the investment environment of the country or region which has bauxite reserves, with the purpose of providing a reference for Chinese bauxite companies.