Why Is The Quantity Of FDI To China From European And American Countries So Less?

Since the day that China came to the top one host countries in the globe who attracts foreign direct investment in 2003,it has been always stressed the importance of changing the attitude of FDI's quantity towards its quality,who urgently looks forward to more FDI inflows from the European and North American countries.However,the reality does not show as what China expects.According to the statistics from Dept.of Commerce,inflows from Asian countries/regions account for over sixty percent,whereas,only ten percent of foreign direct inflows comes from Europe Union and North American Region.Considering the fact,I start the study,aiming to find out the determinants of outflow FDI from Europe Union and North American Region,so as to come up with new ideas to help China to build up itself attractiveness to Europe Union and North American Region.The developed OECD members limited in Europe and America area are chosen as sources countries to move on the study,in which case,international direct investment theories and studies on FDI location determinants worldwide are the foundation of the whole empirical study.Meanwhile,I use descriptive statistics method to analyze the general situation of source countries' FDI,which does favor for the following empirical analysis.And the results show:there are four explanatory variables related to host countries,respectively,market size/economic development/human capital and the degree of controlling corruption,who plays robust positive effects on source countries to make a decision on FDI outflows location.Also,the geographic distance between host and source countries plays a negative effect on the decision.Apart from these variables,as for culture,it is shown that source countries prefer the host countries who share the same official language,or the percent of same second language is over 85%.Where the innovations of the study lie in are:first of all,an original thinking.I explore the determinants of China's inward FDI through the determinants of outward FDI from the developed OECD members from Europe and North America.Secondly,a new method.All related explanatory variables are classified into four groups by attributes,respectively,Nature,Politics,Economics and Culture.Besides,a new gravity model relating to FDI determinants are built based on three-dimension panel statistics.