A Study On Location Choice Of Oversea Economic Trade And Cooperative Zone

In2006. the Department of Commerce proposed the establishment of Oversea Economic Trade and Cooperative Zone (OETCZ) as a measure of outward foreign direct investment. Also, the government introduced a number of policies to encourage Chinese firms to go abroad to build OETCZ. OETCZ is an important way to implement the strategy of "going out’". It is also a totally new mode for Chinese firms to do foreign investment. The location choice is the first problem but also the critical problem which is related to OETCZ’s success or failure. This study on choosing location of OETCZ has not only theoretical value, but also important realistic significance to guide Chinese firms to realize the strategy of "going out"This paper is on the basis of the theory of foreign direct investment in developing countries and the theory of development zone. It introduced the development situation and characteristic of OETCZ and analyzed its function. Then, it did empirical analysis on location selection of OETCZ. This paper established index system to research the influencing factors. It selected13variables, using the method of factor analysis to assess investment environment of the15countries. It finds four factors which influence the location choice and ranks the15countries by their investment environment. From the results of factor analysis, we learned more about how to choose location of China’s OETCZ. Finally, it put forward suggestions on location selection in the establishment of OETCZ.(1) For the excellent investment environment developed countries, the government should promote the cooperation between Chinese firms and host country. For the general investment environment developing countries, the government should implement relevant policies and carry out kinds of service. Also, the government should establish convenient information channels and provide investment guide for firms that what to go out.(2) The firms should make comprehensive study of host countries. Focus on the technical level and management when in developed countries. Pay attention to resource status in developing countries.