The Research On The Impact Of Financial Crisis On The Location Choice Of Chinese Foreign Direct Investment

After the financial crisis，Chinese foreign direct investment is experiencing rapidgrowth in comparison with a sharp drop in the global foreign direct investment. In the faceof the new international situation, in order to sustain the rapid growth of Chinese foreigndirect investment, we have to search for new investment locations, taking new measures.This paper attempts to explain the influence of the financial crisis on location choice ofChinese foreign direct investment by comparing the differences of location choice ofChinese foreign direct investment before and after the financial crisis.Firstly, this paper analyzes the related theory on location choice of foreign directinvestment at home and abroad, and summarizes research results of scholars in thedomestic and overseas which is about impact of the financial crisis on location selection ofChinese foreign direct investment, and by analysising the transmission mechanism of thefinancial crisis, constructs the influence path of financial crisis on location choice ofChinese foreign direct investment.And then this paper analyzes the status quo of the development of Chinese foreigndirect investment after the outbreak of the crisis, and makes a comparative analysis on thelocation distribution of the Chinese foreign direct investment before and after the financialcrisis. From the perspective of the development trend, at present, Chinese foreign directinvestment is in a rapid development phase. From2007, Chinese foreign direct investmentgrows rapidly against the depression, the scale of investment reaching record levels.Chinese foreign direct investment accounts for5.2%of the global flow in2010andexceeds Japan, UK and other traditional foreign investment superpower for the first time,fifth in the world. in the view of the locational distribution of investment, the flow ofChinese direct investment appears negative growth for first time after the outbreak of thesubprime crisis of the U.S., the proportion of investment declining in continue; theproportion of investment in Africa and Oceania investment increases continuously; thelevel of investment in Europe falls to lowest level to record in2008, but with a strongrebound in2009; the proportion of investment in Asia also increases. From view of thecountry distribution, the flow of the direct investment of our country increase in mostcountries and regions, but decreasing in several countries and regions.Finally, by means of the gravity model, this paper analyzes the influence of financialcrisis on location choice of Chinese foreign direct investment with panel data. Being bounded to the outbreak of the financial crisis in U.S. in2007, this paper makes aregression analysis on panel data of2003-2006and2007-2010of70countriesrespectively. Then it contrasts the distinction between before and after and explains them.Finally, this paper makes some corresponding suggestions on the basis of the conclusion ofresearch.