Regional Differences Of FDI And Influential Factors In Jiangsu Province

As a large developing country with a market is gradually open to the outside world, andbecoming more closely, this is not only reflected in the aspects of politics, culture, system, andalso in the economic field.With the rise of the emerging market of our country, whether director indirect investment, have shown increasing geometrical times. Patterns on this scale is single,area direction of the agglomeration characteristics, it is because of this characteristic, the foreigndirect investment shows the east high and west low ladder state potential in china.JiangsuProvince as a typical provinces of foreign direct investment in our country, the amount ofinvestment has been in a leading position over the years, the characteristics of investment issimila to China, decreasing from south to northern of Jiangsu investment, and the gap becomemore larger, reflects the serious imbalance.The difference on performance index of investmentis still needed further research.Therefore, this paper through the understanding of attractingforeign investment to Jiangsu province and its three regions, to in-depth analysis of the mainreasons for regional differences of the investment in Jiangsu province.In this paper, through theoretical analysis, situation analysis and empirical analysis to studythe difference of foreign investment in Jiangsu province. Firstly, to explain the difference isnecessarily and reasonable from the theoretical framework, which lead to factors affecting theexistence of the differences, so as to lay a solid theoretical foundation for the paper. Secondly,analyze the regional differences in two aspects through the Theil decomposition method andCoefficient of variation on foreign direct investment in the quantity.Finally, according to theprinciple of diversity, substitutability, measurable, leading and other factors may influence theperformance index of foreign investment, this paper selected the index such as the infrastructure,degree of urbanizationl, economic development, labor cost, agglomeration effect and the degreeof openness, establishes a panel data model to analysis13regional cities of Jiangsu, relevantfactors have different influence on different regions, the infrastructure and agglomeration effectin each area has the most significant effect, It also suggests that foreign investors attaches greatimportance to the host country of the traffic, communication equipment, port conditions, as well as the development of the cause of the science-education-culture-health etc., and has strongfollow effect for investment, the initial investment has a strong demonstration effect onsubsequent foreign enter. It’is closely related to the regional choice of FDI...