Research On Firm's FDI From The Angle Of Heterogenous-firm Trade Theory

With the trend of economic globalization,China devotes major efforts to developing foreign oriented economy.After years of unremitting efforts,China has made remarkable achievements in economic development.In recent years,Jiangsu Province,as one of the leader of regional economic development in China,responds to the call of China actively,implements the "going out" strategy unswervingly,and is the top rank of foreign direct investment across the country.Foreign direct investment of Jiangsu enterprises' "Going Out" is of positive significance to enhance Jiangsu enterprises' position in the global industrial chain and promote Jiangsu's economic restructuring.In this background,it is very important for enterprises in Jiangsu Province to carry out foreign direct investment.Currently,Heterogeneous-firm Trade Theory is one of the latest research achievements of international trade theory.It describes the productivity of an enterprise as a proxy for heterogeneity,discusses the problem of heterogeneous enterprises' FDI and explains many facts successfully.Thus,the study of enterprises'FDI in Jiangsu Province under the Heterogeneous-firm Trade Theory is both theoretically and practically significant.Simultaneously,since the fact that FDI of Jiangsu's enterprises in service industry has been ahead of that in manufacturing industry and the situation that there is fewer researches on FDI in service industry,this paper makes studies on the FDI of Jiangsu's enterprises in manufacturing and service industry respectively.The research is used to examine the explanatory effect of the Heterogeneous-firm Trade Theory on these two kinds of enterprises' "Going Out".Firstly,the paper combs out the related theories and summarizes the Heterogeneous-firm Trade Theory from the perspective of theoretical and practical research,which laid a theoretical foundation for this research.Next,the author uses different methods to calculate four kinds of productivity and works out the average productivity and the cumulative probability distribution of productivity to analyze the relationship between FDI and productivity of Jiangsu's enterprises in manufacturing and service industry.Then,the author chooses Logistic Model to analyze productivity's influence on enterprises' FDI.The result shows that Jiangsu's manufacturing enterprises are in accordance with Heterogeneous-firm Trade Theory while "productivity paradox" exists in Jiangsu's service enterprises.Other factors affect FDI of the two types of enterprises too.On this basis,the author analyzes the empirical results and also proposes several strategic recommendations for the both types of enterprises from the aspects of the enterprise and the government.