The Research Of Factors Affecting The FDI Location Choice Of Central SOEs

With the deepening of Economic Globalization, as the advanced stage of internationalization, Foreign Direct Investment(FDI) becomes the focus of academic research. As the "eldest son" of PRC, Central SOEs is directly controlled by State-owned Assets Supervision Commission, which is endowed with the superiority of capital, technology and policy. Therefore, it acted as the "vanguard" in C hinese FDI. However, in recent years, Central SOEs frequently failed in overseas investment, causing the huge loss of state-owned assets. Blindly aggressive investment and lack of location analysis led to the mistakes of decision- making. Recently, "O ne Belt, One Road" strategy promoted "Going out" to the height of national strategy again. Therefore, how to seize the opportunity, do an accurate analysis of location advantages of the host countries and make an optimal choice, in order to reduce the risk of failure should be solved urgently.Based on the theory of international investment, international relations and regime, from the angle of investment motive, in combination with the FDI practice of Central SOEs, this study summed up eight major influence factors affecting its location choice. At the same time, included the level of economic development as the regulating factors, we used econometric analysis tools to make an analysis of hierarchically multiple regression models. The result showed that, in countries of different development levels, the investment motives of Central SOEs are different, resulting in the differentiation of influence factors for location selection. For an access to markets and advanced technology, the investment of Central SOEs in developed countries mainly affected by the size of the market, the degree of trade protection and the level of science and technology. In developing countries, the formal institutional arrangement with the host country provided a convenient system guarantee for Central SOEs. Less developed countries, because of its weak location advantage, had little attraction to the Central SOEs, therefore the investment is mainly to realize the diplomatic strategy of central government.In this paper, on the basis of literature analysis, put forward to the "implementing diplomatic strategic" motive which has not been focused, and included visits of high- level leaders, partnerships and other variables to measure the factors of institutional arrangement. In addition, this paper studied the adjustment of the economic development level. According to the actual situation, we choose different variables for analysis, rather than a simple classification regression. Hope to turn the research perspectives of location choice to the particular enterprises group, Central SOEs.