Research On The Knowledge Intensive Services To Attract FDI Location Factors

Since reform and opening-up, China’s Knowledge Intensive Business Services (KIBS) has got rapid development, but compared with the developed countries, it is still at the primary stage. The problem which needs to be urgently settled in every province is how to use locational factor to attract KIBS’s FDI of the developed countries.This paper holds that the production of knowledge intensive services of the knowledge economy and information is the inevitable result of the development of industrial revolution and a business service based on the high quality human capital as the main body, the customer interactive strong, high degree of innovation, regional radioactive strong and high added value. And the KIBS industry is divided into seven categories: information transmission information technology and software services, finance, business services, scientific research and technology service industry, water conservancy environment service, education, culture and sports entertainment industry. From2004to2010, our country’s KIBS has been attracting FDI location advantage on the whole in the continuous improvement, but the improvement has been to a lesser degree; the eastern region location takes advantages and constantly improves. The central and western region has location disadvantage, but it is not sure whether location advantages actually improve or not. Regional economic development level, the level of urbanization, the high quality human capital supply, informationization level and industrial cluster have effects on our country’s KIBS to attract FDI location distribution of main influence factors, the multinational knowledge service enterprise will choose the developed eastern region of China for investment. According to the panel data of east14provincial panel data in2004-2009, analyzing from the whole country, the eastern region and the central region, the paper makes an empirical analysis, showing that the per capita GDP and fixed assets investment rate to the national and parts of the central and western region’s KIBS to attract FDI play a significant role. In addition to the per capita GDP and fixed assets investment rate outside in the eastern provinces, the human capital stock has a great impact on the KIBS of FDI.Finally, the paper proposes policy recommendations according to the empirical analysis results, economic restructuring should be sped up on the national level, and the foreign investment structure should be improved as well; the high-technical industry should be developed in the eastern region, cultivating the knowledge intensive service backup talents; at last the economic development level should be promoted in the central and western region and the infrastructure construction be strengthened.