Research On The Influencing Factors Of FDI Location Choice For Chinese Enterprises

With the acceleration of the process of globalization, foreign direct investment hasgradually replaced the position of international trade in the international division oflabor, it has become the primary way to participate in international competition in themarket. After entering the21st century, the activities of foreign direct investmentwhich the Chinese enterprises to participate in have become increasingly frequent, theChinese government and enterprises is also increasing emphasis on the strategicissues of foreign direct investment. In addition, the2008financial crisis largelychanged the international environment, it brought instability influencing factors forthe global foreign direct investment location choice, and therefore continuing to focuson foreign direct investment location choice is not only of theoretical significance,but also great practical significance.This paper summarizes the location choice theory, and relating to the foreign directinvestment theory, multi-angle analysis of the course, the status quo and existingproblems of China ’s foreign direct investment, these highlights the need to make theright location choice of foreign direct investment. The location choice relates to thesuccess or failure of foreign direct investment, Enterprises only regard it as a basicstrategy of opening up,and Conscientiously do a good job, they are able to better useof the two markets and resources.Based on the eclectic theory of international production, This article used themethod of normative analysis and empirical analysis, qualitative analysis andquanlitative analysis, and focused analysised the lnfluencing factors of locationchoice of China’s foreign direct investment. the author selected63countries as ainvestigative sample, extracted national GDP, per capita income etc.in2003-2010,applied the panel data model to analysis the relationship of the various factors andinvestment flows; the empirical results show that: the foreign direct investment flowsand the host country GDP, preliminary stock of direct investment, infrastructure, traderelations, cultural similarity was positively correlated; with the host country’s naturalresources, per capita national income is negative correlation. From microscopicaspects, using questionnaires to collect data of enterprises, the author tried to revealthe relationship between psychological distance and location choice of foreign directinvestment, and eventually found the reverse relationship between psychologicaldistance and FDI location choice. Finally, it proposed regional strategic, and puttedforward some specific measures from the national level and the corporate level.