A Comparative Study On The Influence Factors Of Absorptive Capacity From Eastern And Western Parts Of China

With the deepening of the process of our reform and opening up, our country’s economy also developed rapidly. The improvement of economy and investment environment is greatly improving the FDI absorptive capacity in our country, with the total FDI absorption’s growing. However, through the analysis based on the statistical data from the national bureau of statistics can find that the total FDI absorption exists a significant among different regions in China. This phenomenon shows that Chinese FDI absorptive ability is different among separate regions.China own vast territory and large population. There are huge differences among separate areas, such as geographical environment, cultural environment, policy environment and so on. The presence of these diversification, directly impact on the local FDI absorption ability, meanwhile affect the amount of FDI absorption in every regions. In this paper, the author hopes to provide some suggestions about improving FDI inflows by exploring the differences between the eastern and western regions.This article first introduced the domestic and foreign scholars on the research situation of the influence factors of FDI inflows, and the related theory research are summarized. On the basis of the theoretical research, the paper analyzes the current situation of FDI inflows in eastern and western regions.In order to study the influence factors of FDI absorptive ability, this article from the basic theory, analyzes the FDI absorptive ability, and calculates the relevant data of national bureau of statistics. Choosing three factors, fifteen evaluation indexes, and then using SEM equation to analyze the influence of FDI absorptive capacity in eastern and western regions.In order to test the accuracy of the analysis and the applicability of the SEM equation, this article adopts the method of empirical analysis examined the relationship between the FDI absorptive capacity and its influence factors. This paper first verifies the correctness of the model parameters, determines the model parameters correction, verifies the overall adaptation degree of the model. Then respectively the influence factors of FDI absorptive capacity of eastern and western regions and the relationship between the FDI absorption amount of the inspection.Based on the above research, in this paper, the basic research results were obtained. In combination with the results of the study, to make some suggestion to improve Chinese FDI absorptive ability between the eastern and western regions. Hope to improve the utilization efficiency of the total number of Chinese FDI inflows, to enable our country to use the FDI to promote the economic development.