Research On The Influencing Factors Of China’s Provincial FDI Absorptive Capacities

With the development of Chinese economic, the inflows of foreign direct investment have experienced several peaks. As observed by statistical data, there are significant differences among provinces, which mean the great differences in FDI absorptive capacities. Meanwhile, more and more attentions have been drawn to the great differences among provincial FDI inflows in the condition of that the studies on the FDI inflows of China almost focus on the level of country. The different political and economic conditions can be result in the various extent of FDI absorptive capacities. In this background, it is emergency to offer some research on the provincial influencing factors of FDI absorptive capacities.China is a large scale country with an enormous population, of different political economic social and geographical conditions of provinces for the reason of being located in the different areas. The existence of the diversities have created the different influencing level of FDI absorptive capacities resulting from various influencing factors, which have significant impacts on provincial FDI inflows. This paper bases on this subject and focuses on the veritable level of influencing factors of provincial FDI inflows, which in the purpose of offering theoretical supports for policy-making.Above all, the paper gives brief introduction of the relationship between the FDI inflows and the influencing factors, and summarizes the research both at home and abroad. Base on it, the paper analyses the current situation of FDI inflows in the points of three areas and provincial diversities. This matter shows the research method of comparative analysis and offers reality basis to the study of FDI absorptive capacities.To investigate the influencing factors of FDI absorptive capacities, the paper makes theoretical analysis and data testing. Focus on the panel data of29provinces from1996to2010, the paper calculates the value and weight of six evaluation indicators of five influencing factors and gains the indexes of Integral FDI absorptive capacities finally.To verify the affection degree of influencing factors to FDI absorptive capacities, the paper studies the relationship between FDI absorptive capacities and influencing factors empirically. In progress, the paper makes empirical test both in the points of totality and partition in three zones and gains different influencing level of three zones respectively. At last, the paper explains the result coming from the empirical test.Base on the study above, the paper offers conclusions and give some suggestion for policy-making to the provinces for enhancing FDI absorptive capacities in order to improve the FDI inflows and efficiency and make FDI inflows serve the development of our economy better.