| With the carrying out of Reform and Opening-up policy and accessing WTO, China began to participate in world economy gradually. And at the same time, foreign direct investment had also continued to flow into China. At present, China has become one of the countries which take the most utilization of foreign direct investment. Otherwise, because of China’s vast geographical space, there are large differences among different regions, which lead to different abilities in absorbing FDI. At the beginning, FDI mainly concentrated in southeast of China, this was also the result of opening policy. In recent years, the developing gap between the coastal and the inland is more and more deep, and the problem of regional imbalance is becoming more and more serious, at this situation, the state has started the "rising of central China" strategy in order to narrow the gap between different regions.Anhui locates at the junction of eastern and western area, how to realize the interaction between west and east and rise of central region under the new regional development strategy, Anhui’s economic development is worthy of attention, so there are theory and practice significance in systematic research of FDI in Anhui province.Based on the international direct investment theory, referring to the research methods and results of the affecting factors of FDI, on the basis of analysis of current situation of foreign direct investment in Anhui province, the theoretical framework of foreign direct investment in Anhui province is proposed. Then selecting indicators to measure the influencing effect of factors of foreign direct investment in Anhui province, and an empirical test has been made through multiple regression analysis. Finally, putting forward corresponding suggestions on the basis of analysis results.The first part is the theoretical foundation, including chapter one, chapter two and chapter four. The first two chapters make systematical study on the research background, research significance, research methods, the related theory and research status at home and abroad, which lays the theoretical foundation for the whole article. The fourth chapter is theoretical framework and hypothesis for the influencing factors of FDI.The second part is the core of this paper, including the third and the fifth chapters. The third chapter is research on status of FDI in Anhui province. Firstly, introducing the basic situation of FDI in Anhui Province, that is total amount of FDI keeps increasing but is still very backward compared with the eastern region. Secondly, concluding the characteristics of FDI in Anhui Province from five aspects:the industry and the industry distribution of FDI, the way of FDI, the source of FDI, the regional distribution of FDI, and the motivation of FDI. The characteristics of FDI in Anhui province are as follows: manufacturing industry attracts the most FDI; the main way of FDI is foreign joint venture; Hong Kong, Japan and Singapore are the main source of FDI; Hefei, Wuhu, Ma’anshan are the three cities which attract the most FDI respectively; the motivation of FDI in Anhui is the use of low labor cost, huge potential market and so on. Finally, it summarizes the main problems of FDI in Anhui province, which are the total amount is too small, the investment structure is unreasonable, the regional distribution is imbalanced and the source of FDI is too concentrated. The fifth chapter is empirical research on the influencing factors of FDI in Anhui province, by selecting seven indexes from four factors and using multiple linear regression model and Eviews6.0 software to analyze the relationship between FDI amount in Anhui province and its influencing factors. The results show that the total import and export volume (XI), gross output of non-state industrial enterprises (X2), a dummy variable boundary in 1992 (X3), GDP (X4), growth rate of GDP per capita (X5), the highway density (X7) have positive impact on the inflow of FDI in Anhui Province, the average wages of staff (X6) has a negative effect on the inflow of FDI in Anhui province.The third part is the sixth chapter, carrying on summary of the full text and putting forward corresponding policy recommendations and research prospects. The five suggestions for FDI of Anhui province are proposed:first is to guide the flow of FDI in industries, promoting the optimization and upgrading of industrial structure; second is to guide the flow of FDI in regions, promoting regional development coordinately; third is to make full use of Industrial Park, forming the cluster effect; fourth is to find new investment channels, attracting FDI from other countries; fifth is to do a good job in tracking service after the introduction of foreign capital. |
