The Analysis Of The Factors Which Influence The Location Of FDI In China Under The Perspective Of The Spatial Economic

The rapid development of FDI which takes the Multi-National Corporation as the carrier becomes the key motivative force to promote the economic globalization and regional economic growth. The rising and development of space economics theory provides a new perspective and new method to research the problemof FDI location selection. The distribution of foreign investment in China is seriouslyunbalanced, and the polarization phenomenon is very serious. As most ofthe FDI flow to the east, the investment geographical area becomes highly concentrated.So the study on the influencing factors of location choice of FDI and the present development situation in China has a practical significance to understand the reasons why China’s current regional FDI gap exists, and then to improvethis situation.Firstly, the new economic geography free capital vertical linkage model (FCVL model) was modified to discuss the major impact of the influence factors ofDI location choice under the restriction of the income level of consumers under. Then use the spatial measurement model to analysis the distribution of FDI in our country. Finally we analyze the factors which affect FDI location selectionof China through the spatial lag and spatial error model. From the study, we found that the distribution of FDI in China is unbalance, most FDI concentrated in the eastern coastal provinces. Human capital, infrastructure, market size, openness and foreign investment have positive effects on FDI of China, in which the inflow history has the most significant on FDI. There is a negative correlation between the level of development of local industry and labor costs, but the negative effect of labor costs FDI is not significant. Study results also showed that FDI in the provinces (city) exists the spatial autocorrelation relations. In view of this, the article finally gives the policy suggestions for further attracting FDI in china.