Research On The Determinants Of Guangdong Province’s Outward Foreign Direct Investments Location Choices

In recent years, with the rise of the economy and the overall strength,after becoming the largest foreign investment in developing countries, China has become a large important country with the fastest-growing foreign investment, the top increment and stocks. Guangdong as the first economic province in China, the international trade regions and the first big foreign investment province, lives in the leading position on the rapid development of China’s foreign investment. The locational choice and industrial distribution of foreign investment in Guangdong have distinctive features, and there are some risks and problems. Therefore, the study of locational choice and influencing factors of Guangdong enterprises outward foreign direct investment has important theoretical and practical significance.Based on the analysis and summary of the previous, the article chooses the location choice theory and the international direct investment theory as theoretical basis, and uses the methods of literature searching, theoretical analysis, comparative analysis and empirical analysis. Analyzing the agent and the locational choice on the OFDI of Guangdong enterprises theoretically, and explore the distribution situation and the pattern of the OFDI in Guangdong enterprises. Contrastively analyzing the differences of the OFDI between the state-owned enterprises and private enterprises, and empirically analyzing the influencing factors of the OFDI in Guangdong enterprises.This study found that the differences are significant between state-owned and private enterprises of the OFDI in Guangdong, and the enterprises exhibit different characteristics of the direct investment location choice between the developed and developing countries. The state–owned enterprises’ OFDI tend to target at countries that are rich in natural resources. However, the private enterprises are inclined to invest in the developed technological level and the close trade relations with China, and the private enterprises prefer to invest host country with wealthy and low-cost labor force. Meanwhile, the state-owned enterprises and private enterprises both tend to invest in the developed countries with large scale markets. Furthermore, the private enterprises’ OFDI tend to target at countries that with mature infrastructure, stable political environment, while the state–owned enterprises’ OFDI is not sensitive to the political risks of the host country.