A Study On The Factors Affecting The Location Choice Of Chinese Manufacturing Foreign Direct Investment

Manufacturing industry is the pillar industry of China's national economy,The manufacturing plays an important role in China's OFDI.As "world factory",China's manufacturing has greatly developed,And the manufacturing in China currently faces the domestic excess capacity and intensified foreign competition,they need to OFDI.Essentially,enterprises OFDI is the change of spatial distribution of enterprise resources.As a result,it is of great significance to study the influencing factors of the location choice of China's manufacturing OFDI.On the basis of the selection theory of foreign direct investment location and the choice of location of foreign direct investment.Based on the characteristics of China's manufacturing OFDI and investment structure,the location foreign direct investment,the characteristics of location investment in the five economies are summarized.The author also summarizes a number of problems occurring in the location selection for Chinese manufacturing.This paper analyzes the motivations of China's manufacturing foreign direct investment,including market seeking type,resource-oriented type and technology acquisition type.In addition,this paper analyzes the factors that affect the selection of OFDI for China's manufacturing industry from two levels of internal and external factors,and puts forward the thinking of the selection of foreign direct investment in China's manufacturing OFDI industry.This paper also makes an empirical study on the influencing factors of China's manufacturing industry's choice of direct investment in five economies.And the estimation results show that,market size,labor cost,technical level,natural resources,geographical distance and bilateral trade have a positive,significant impact on the choice of manufacturing location in China,while the exchange rate,infrastructure have no significant effects on location selection.For market-oriented,market size,labor cost,geographical distance,bilateral trade impact;for resource-oriented by the host country's market size,bilateral trade,natural resources,geographical distance significantly;technology-seeking by the host country's market size,technology Level,bilateral trade,geographical distance significantly.This paper argues that we should further expand the scale of China's manufacturing foreign direct investment,scientific and reasonable location selection,enhance their own core competitiveness,in order to improve the manufacturing efficiency of foreign direct investment.