The Comparative Research Of The Influencing Factors Of China's Foreign Direct Investment Location Choice

In the late 1970 s, China's foreign direct investment began to sprout.From the beginning to the end of the 90 s, China's foreign direct investment scale is small,however, it's "going out" pace speeding up after our country joins world trade organization(WTO) in 2001. By 2013, China's foreign direct investment flows already up to the world's third. At the same time, in recent years, China kept in the transition period which exports reducing year by year and the trade surplus continued to slow,export cannot meet the needs of the government to expand domestic demand for itself, also can't pull the enterprise to the internationalization path. Transform the internationalization of enterprises, foreign direct investment is the only way. This article is against this background, with international panel data study of China's foreign direct investment location selection problem and with the reality of China's foreign direct investment related policy suggestions are given. Specific research is divided into the following several parts:First, starting from the five stages of China's foreign direct investment, the qualitative analysis of the motives of China's foreign direct investment location choice and influence factors, and then based on the fifth stage and the analysis of the present situation of China's foreign direct investment, from the internal factors and external factors to analyze the necessity of China's foreign direct investment, and finally, through the specific factors of location selection of China's OFDI mechanism to analyze the influence of China's foreign direct investment.Second, with multinational panel data(61 countries from 2003-3013) on China's foreign direct investment to the full sample test of the influence factors of location selection, according to the results, China's OFDI significantly positively related to GDP,the bilateral trade volume with the host country, host country's resources endowment, the institutional environment, and significantly negative related to the distance between China and the host country,labor costs and the cultural differences between China and the host country.Beside, other factors such as whether to sign a trade agreement or the host country exchange rates is not significantly affected China's OFDI.Third, empirical testing the developed countries and developing countries respectively, the results showed that the influence factor of significance is different.In terms of flow to the investment of developed countries, the efficiency of China's OFDI type seek motivation is more obvious. Investment market seeking and resources in developing countries to seek motivation is more obvious.