Research On The Influencing Factors Of Direct Investment Of China In Developing Country

With the rapid development of China’s economy, remarkable increase of economic strength, the strategy of Chinese enterprises to go out was push forward steadily, especially after the 2008 financial crisis, emerging market countries economic grow faster and absorption of foreign capital is also growing, but developed economies recovery is weak. According to the journal of world investment report 2015 by UNCTAD, FDI inflows to developing economies continuously go ahead, account for 57.71% of the world FDI total flow, over $182 billion than developed economies,and multinational company investment reached record levels in developing countries. In 2014, the world economic situation is complicated and grim, global foreign direct investment flow fell by 16%. China’s foreign direct investment is being upturned, flow ranked third by global countries for three consecutive years. with China’s $97.68 billion investment flows to developing economies, accounting for 79.3%. In 2014, China’s FDI in Asia flow of $84.99 billion, accounting for 69.0% of that year China’s FDI flows, in which 7.809 billion us dollars was invested to ASEAN, rank only second to Hong Kong, China, the third Latin America direct investment flow of $10.54 billion, account for 8.6%, just below the second European 0.2%. With the importance of China, ASEAN, Latin American and other developing economies has been strengthened, developing countries have become the major foreign investment destination, with treating them as object, research on the influencing factors of China FDI is with a strong representative significance.This article includes five modules, the introduction concrete from the article research background and significance and so on, to do a simple overview of the article. The second module is for the theoretical analysis part, reviewed the relevant theories of the developing countries to carry on foreign direct investment, review and classify the forefathers’ research paper about investment in the developing countries, represented a guiding significance to China activities. The third modules is through the existing data, comparison and analysis of the size and structure and the status of ASEAN and Latin American that China direct has invested. The fourth modules is the research focus, take effect a comparison and analysis of the influence of direct investment, selection of China from 2003 to 2013 foreign direct investment flows to ASEAN seven countries,ten major countries of Latin America’s to be explained variable, using the multivariate regression model analysis the main factor of China’s direct investment to main host countries like ASEAN, Latin America, including the resources endowment (RES), infrastructure (IFR), the size of the market (GDP), industrial structure (IS), technology development level(HT), geographic distance (GD), political stability (POL), exchange rate (ER), the speed of economic growth (RED). The fifth part, according to above research puts forward the countermeasures, which can be used as reference for the investment in the future.