An Empirical Research On Factors Influencing FDI In Hebei Province

In1978，China developed Reform and Opening-up.economic globalization andregional economic integration has deepened. The contact between countries becomecloser. The development of a country or region depends on its own development andother regions’ development. After joined the WTO, Hebei Province is located in the BohaiBay, closing to the capital of Beijing and Tianjin and is geographically divided intoeastern. Hebei also has487km of coastline and Qinhuangdao, Tangshan, Huanghua threemajor ports. It has clear east coast features. With attracting FDI setting off a wave，HebeiProvince on the use of FDI is also facing new opportunities and challenges. Starting fromthe empirical,qualitative analysis of the14factors to attract FDI in Hebei Province andHebei Province to identify these factors on the impact of FDI attraction policyrecommendation for the conclusion.This paper summarizes previous scholars on the basis of utilization status of FDIfrom Hebei province.Then analyze the big four factors in attracting FDI.Qualitativeanalysis of the general factors that affect FDI, we select14explanatory variables. Theyare: the level of economic development, market size, market capacity, labor costs,openness, quality of labor, technology status, cumulative FDI, enterprise producttransportation conditions, the degree of access to information, the convenience oftransportation, infrastructure investment, labor productivity, and the degree ofdevelopment of tertiary industry. Then we make factor analysis using these14indicators,select two common factors and make regression analysis on the base of factoranalysis.Then we get the relevance degrees between14indicators and the FDI of HebeiProvince. From all we obtained，we give some policy recommendations to Heibeiprovince how to attract FDI.