The Research On China’s Foreign Direct Investment Based On Enterprises Heterogeneity Theory

With the development of the global economic integration, foreign directinvestments become one of the most important driving forces of world economicgrowth. Carrying out the going-out strategy, Chinese outward foreign directinvestments make a great progress in these years. Promoting Chinese enterprises togo out plays an important role in moving up the value-added chain and reformingeconomic structure. Therefore, figuring out factors affecting the development ofChinese outward foreign direct investment is theoretically and physically vital fordomestic economic growth.Based on HYM model of “Enterprises Heterogeneity Theory”proposed byHelpman et al.(2004), this paper using the static panel data model and dynamic paneldata model discusses the factors affecting Chinese foreign direct investment, bytesting the2003-2012Chinese national economy and industry classification (GB/T4754-2011) in13categories, a total of966small classes as the sample.The results show that productivity is the key of Chinese enterprises foreigndirect investment. The higher level enterprises perform at, the easier enterprises to goabroad. Besides, National Policies, Export Scale, Industry Scale, Industry Wage andother factors also can promote foreign direct investment. Accordingly, this paper putsforward the corresponding policy proposals from two aspects to stimulate Chineseforeign direct investment achieving a qualitative leap and developing soundly andsteadily.