Research On Location Choice Facotors Of China’s Outward Direct Investment

With the continuous development of economic globalization, Foreign direct investment has gradually replaced the international trade, becoming the major operation mode of world economy. The participation of China in the global economy becomes deeper. Since China carried out the strategy of "going out", the foreign direct investment activities of Chinese enterprises has been developing rapidly. Currently, it is facing the transformation and upgrading of industrial structure.And foreign direct investment has entered a new stage.This paper firstly reviews the related theories and literatures about foreign direct investment, then combs the location theory in international investment theory. Considering our enterprises’ current outward foreign direct investment situation and characteristics, it concludes three motivations of foreign direct investment:market-seeking FDI, resource-seeking FDI and technology-seeking FDI. By constructing gravity model through Eviews 6.0 and collecting 27 countries panal data during 2007-2012, it empirically analyzes all counties, developed countries and developing countries panal data of different motivations.The empirical result shows that Chinese market seeking FDI are mainly distributed in developing countries which has a larger market, and resource seeking FDI are mainly distributed in countries with high intensity, while technology seeking FDI are mainly distributed in the developed countries with high science and technology index.Finally, according to the result of the empirical analysis,and on the basis of theoretical and empirical research,it gives suggestion on China’s FDI location choice from macro government level and micro enterprise level. Hoping the suggestion can provide our enterprises ideas on the FDI location choice.