Analysis Of FDI Location Selection Factors

To better and faster development,reform and opening up,joined the tide of economic globalization,adequate through the use of foreign funds,advanced technologies and management of resources for the development of our economy.Since 1979,since the utilization of foreign capital,China has undergone development,economic,trade and other areas showed a rapid growth trend,and people's living standard has been improved significantly.Paper according to economic regional will China divided into three area: East,Central and West,East area include Hebei,Liaoning,Jiangsu,Zhejiang,Fujian,Shandong,Guangdong,Hainan 8 province and Beijing,Tianjin,and Shanghai 3 municipalities;Central area include Henan,Shanxi,Jilin,Heilongjiang,Anhui,Jiangxi,Hunan,Hubei 8 province;West area include Yunnan,Sichuan,Guizhou,Guangxi,Inner Mongolia,Gansu,Qinghai,Shaanxi,Ningxia,Xinjiang 11 provinces and Chongqing 1 municipality.Through practice,inflows of FDI,can greatly stimulate the development of regional economy and spurring the transformation and upgrading of traditional industries and increase employment.But from looking at the spatial distribution,the distribution of FDI in China's three major areas are completely unbalanced,utilization of foreign capital in the eastern part earlier and high share of FDI,FDI in Central and western area little.From the time perspective,factors affecting FDI location selection of FDI impact in changing over time.It is this regional imbalance as well as the effects of various factors on FDI dynamics that makes sense of this study.Selected East,Middle and West from the 1992-2015 panel data and policy changes,into the 1992-2003 phase(in the phase,regional policies or in the midst of change)and 2004-2015(after 2003,there are no changes in our strategy to attract foreign capital).General Shang,paper will effect FDI of factors is divided into has social factors,and economic factors,and production elements factors and new economy geography factors three big plate,in this based Shang and fine into traffic convenience degrees,and policy factors,and city development level,and residents consumption level,and education level,and labor cost and industrial industry agglomeration density,selected has 7 a variable multiple analysis the factors on China three big area attract FDI of effect,and through measurement return estimated the factors on FDI of effect coefficient.Research shows: in these two periods,part at some stage had no significant effect on FDI,estimated symbol on the whole in line with expectations.Which,market factors,and policy factors and labor cost is regions attract FDI of most main factors;the factors in different area between on FDI of effect differences is big,especially industrial industry agglomeration density,displayed showed that FDI agglomeration effect in East area has formed must of scale,in the,and West area of FDI agglomeration degree still in bud State;due to East area of industry transfer,makes FDI on central area of labor quality requirements gradually increased,Western regions are still cheap labor and favorable policies to attract FDI the dominant factor.Finally,based on the empirical results,differences between the three regions puts part of the strategy to attract foreign capital: East area should further mining market potential,expand market consumption capital,improve labor of quality,is committed to attract more quality of FDI,optimization industry structure,improve FDI of agglomeration effect;central area needed do accept East industry transfer of prepared,increased based facilities construction,improve traffic convenience degrees,further using offers policy attract FDI,to improve FDI of agglomeration degree;Available in the Western region preferential policies,guiding foreign investment in industries mainly for infrastructure development,making full use of material resources,development of raw material production,processing,and other industries.