Impact Analysis Of Chinese FDI Location Choice Based On Factors The Cultural Differences

In recent years, with the rise of the deepening of economic globalization and international investment, there has been a large number of domestic and foreign direct investment for the research literature. Foreign direct investment as an important component of decision-making, location selection has thus become a hot issue academia and industry attention. On location choice, there are two main theories internationally represented in Dunning eclectic theory of international production and internalization theory to Buckley, Carson represented, both theories are mentioned, and cultural factors that affect investment cost-benefit thereby affecting business investment location choice. Impact of cultural factors on investment can be positive or negative can be the end result depends on the economic reality.In2002, the Chinese government vigorously promote enterprises "going out", China’s foreign direct investment is beginning to show leaps and bounds. Along with China’s increasing foreign direct investment, domestic scholars have also begun research work in related fields. When research and analysis on the impact of cultural factors on location choice, the existing literature to distinguish between foreign direct object of study is mainly from the country, intercontinental perspective, not deep into the country’s specific cultural background, you can not very well be cultural differences peel off with the other factors, there is a certain room for improvement research.In this paper, based on previous studies, starting from the two theories, the subjects were divided into Confucian culture, Islamic culture and Christian culture according to three categories of cultural property, the introduction of the gravity model based on this, the use of2004-2012years China’s foreign direct investment the method of data analysis and the panel on the impact of cultural differences on China’s foreign direct investment location choice for a detailed theoretical and empirical analysis. The results showed that:cultural differences significantly affect the location choice of Chinese foreign direct investment in the host country with the cultural distance between China and the greater psychological distance from its direct investment in China’s smaller. In addition, economies of scale factors of the host country, China’s own economic strength, such as bilateral trade between the two countries will also affect China’s direct investment in the host country. Finally, based on the results of empirical research, the paper’s foreign direct investment strategy of Chinese enterprises some suggestions.