A Study Of The Influence Factors Of Location Of China’s OFDI

Since the economic reform and open up, China’s foreign direct investment has achieved remarkable results, the location choice of China’s OFDI has been changing. Location factors will have a crucial impact on the investment income, risk and efficiency, so it has important theoretical and practical significance for the research on China’s OFDI. Based on the theory of location advantage of Dunning’s Eclectic Theory of International Production and the location distribution of China’s OFDI before and after the financial crisis of 2008, combined with the research of the location choice of China’s OFDI, this paper reviews the impact factors of the various location factors on China’s OFDI. According to the analysis of the various location factors, the paper get the influence factors of the indicators of measurement. Based on the investment gravity model of panel data, choosing China’s OFDI flows to the host countries as explanatory variables, and choosing the GDP of host countries, the volume of bilateral trade and shipping distance as control variables. Data of 76 countries and regions was chosen as a sample of the location choice of China’s OFDI, to investigate the different effects of key variables of the host countries’.The strategic assets level, resources abundance,the level of political risk and real GDP per capital in 2003-2007 and 2008-2014 was chosen as key variables. And the changing of the weighting of influence factors of the two stage was compared. By regression analysis, it is found that the size of host countries’ market, bilateral trade and resources abundance has sustained and stable positive effect on the location choice of China’s OFDI, and the shipping distance has sustained and stable negative effect on the location choice of China’s foreign direct investment.The impact of strategic assets of the host country to China’s OFDI has changed from not visible to visible.the influence of the system level has changed from negative to positive. Finally, based on the above studies, this paper conclude the conclusion and inspiration to the location choice of China’s OFDI.