Analysis Of Foreign Direct Investment In Regional Differences In The Evolution Of Its Influencing Factors: Spatial Econometric Perspective

Today’s rapid rate of development of Chinese foreign direct investment, is nowamong the world’s highest, has gradually become the hotspot of foreign directinvestment. Although our country has made greater achievement in using foreigninvestment, however, with the influx of FDI in China, its regional distribution isextremely uneven and has a negative impact on China’s economic development. Thisarticle mainly from the foreign direct investment on China intensifies the imbalance ofregional economy in our country the reality basis of comprehensive science to explorethe influence of the influence factors of FDI location choice and making scientificpolicy guidance for narrowing regional gap.Theory, the first comprehensive analysis to grasp the present situation of foreigninvestment in China and its geographical distribution, found that foreign directinvestment distribution mostly in the eastern region, the western region distribution atleast. From the point of provincial distribution, the eastern region of foreign directinvestment mainly concentrated in the pearl river delta, with Shanghai, Tianjin, Hebeiand Liaoning and other places. Foreign capital enterprise in central China mainlyconcentrated in Jiangxi, Hubei and Hunan provinces. Based on related internationalforeign investment theory to explore the influence factors of FDI location choice,including economic development level and the size of the market factors, openness andregional factors, labor quality, labor costs infrastructure, preferential policies, the spatialagglomeration effect and correlation factors in seven aspects.Of empirical and indicators for the various influencing factors of the country andits features ordinary panel regression, found that foreign direct investment distributionobviously differences in features, and there are spatial agglomeration effects and scaleeffect. So using exploratory spatial data analysis method to study the FDI inflows ofspatial correlation between China’s31provinces and regions, using spatial econometrictest is conducted on the influencing factors of FDI inflows. Experience results show thatthe spatial correlation of locational distribution of China’s regional FDI graduallystrengthen, FDI in China centered on the eastern, central and western regions for outerspace heterogeneity pattern has been formed; FDI factors affecting the enhancement ofthe spatial heterogeneity "core-periphery" the stability of the structure, FDI andeconomic running environment of the space effect is significant; FDI stock, market scale, technology level and market environment factor were significantly positivelyrelated to foreign direct investment inflows.Differences in regional distribution of FDI in China has become an indisputablefact that, we should pay attention to the space of FDI across regions and link, formed akind of channel pattern of mutually beneficial and win-win, at the same time, thegovernment should increase investment in technology, infrastructure, etc, with emphasis,also should further improve the Midwest market conditions and legal conditions,enhance viability of the upper Midwest. In the process of economic growth realizeequilibrium path of FDI spatial effect.