Research On Chinese Foreign Direct Investment Location Choice

Since 2002 Sixteenth CPC National Congress take "going out" policy as national strategy, in these years Chinese foreign direct investment is continuously increasing in high rate. As recently China still faces the situation of lack of domestic need, over capacity, excessive foreign exchange and other kinds of problems, sticking to development of foreign direct investment is a essential part of long-term strategies. In the day of international complicated situation and moderative domestic economic, research on Chinese foreign direct investment location choice will be much meaningful for maintaining a smooth growth rate.First, this paper introduces the background and significance of Chinese foreign direct investment location choice. Then it reviews the literature of foreign and domestic elites and explain its own way to research. Finally, it introduces the innovation points and shortcomings of this paper. In second chapter,classical theories are summarized and primary model of "investment type-location choice" is built. In the third chapter, new general situation and new traits of Chinese foreign direct investment are summarized refer to the recent data. And the effect caused by the new traits on the location choice is also listed. In the fourth chapter, the author takes the development history of Chinese foreign direct investment as the mainline and first summarizes the stages of Chinese foreign direct investment process. Then continent location traits and industry location traits of Chinese foreign direct investment are summarized. In the fifth chapter, the main factors that affect the Chinese foreign direct investment location choice are listed refer to literature of foreign and domestic elites, classical theories and traits of Chinese foreign direct investment. And it also researches on how these factors affect from the perspectives of host countries and investment country. Besides this,8 hypotheses are listed refer to the above factors from host countries. In the sixth chapter, the author takes the panel data model as research model refer to Chinese foreign direct investment from 2003 to 2012, data of influencing factors in host countries. And it draws a conclusion refer to the above hypotheses. According to the theoretical overview and empirical test the author finds that recently Chinese foreign direct investment is resources-oriented, market-oriented and efficiency-oriented, but the motivation of strategic asset seeking is not enough clear. And it is easily to be found that highly developing China tends to invest in countries with high tariff, large trade scale with China, complete social system, shorter distance from China. Finally the author provides some suggestions from the perspective of government and enterprises from the theoretical overview and the empirical test.