Analysis On The Influence Of Rising Strategy In Central China On FDI Location Selection In The Region

Since reform and opening up,the central region has lagged far behind in terms of economic and social development in the east,and in enjoying the preferential policy and not far in the western region and even in the northeast,people’s living standard also gradually behind the national average.And central region has long been a major cause of the slow development is very little social production can use foreign capital,make the central provinces basic can only maintain the original production status,optimization and upgrading of industries can’t all social construction lagging behind,and form a vicious circle.However,from 2003,the concept of "central rise" was put forward to the implementation of the relevant documents in 2005,and the central region really began to belong to the "reform and opening up" of the region.According to the data,after the implementation of the strategy of central rise,fdi in the central region has increased significantly,and the regional GDP has also increased significantly.But foreign direct investment location choice in what changes before and after implement the strategy of rise of central China,to find what factors after the rise of central China strategy implementation of foreign direct investment(fdi)affects significantly,accordingly from the geographical factors of which put forward the corresponding policy recommendations,will be the focus of this article.This paper is divided into six chapters.The first chapter the paper selected topic research background and research significance,the domestic and foreign scholars on FDI influence factors of related research,the research contents and research methods of this article,the structure of this paper and the innovation of this paper and deficiencies;The second chapter introduces the related theory of location selection of FDI,mainly is the regional economic theory,international direct investment theory and new economic geography,the regional economic theory,this paper introduces the location theory and representative of the theory of regional economic development theory,international investment theory focuses on the monopoly advantage theory,product life cycle theory,marginal industry expansion theory,internalization theory and international production compromise theory,are introduced and new economic geography;Mr Krugman’s achievements,The fourth chapter introduces the relevant content of the central rise strategy,which mainly includes the background,relevant policy measures and significance of the central rise strategy.Fourth chapter in attracting FDI in central China’s advantages and disadvantages,advantages include economic growth,location and transportation advantages,natural resources,labor cost advantages,such as human capital advantage and industrial base advantage,and disadvantage including unreasonable industrial structure,market development degree is low,the slow process of urbanization,and low level of opening to the outside world;The fifth chapter is the core part of this paper,this chapter first examine the rise of central China strategy has a significant influence on foreign direct investment in central China,and then according to the central region is expected to have greater impact on FDI into the six factors of measurement model is established,and the policy as a virtual variable is introduced into model,use Eviews6.0 on the central six provinces from 1996 to 2015,a total of 20 years of panel data regression analysis.The sixth chapter is the policy advice on how to attract more FDI in the central region according to the regression results.All the data came from the Chinese statistical yearbook and the statistical yearbook of the central provinces.The empirical results show that there are significant changes in the location factors that affect fdi before and after the implementation of the strategy.Before the rise of central China strategy in 1996-2005,the influencing factors of foreign direct investment is mainly formed by foreign direct investment of agglomeration effect,regional economic development level,industrial structure,transportation ability and labor costs.After implement the strategy of rise of central China,the foreign direct investment in the formation of agglomeration effect,regional economic development level and the ability to transport and Labour costs and the level of opening to the outside world such as the location factors of foreign direct investment(fdi)attract role change obviously,but the role of the industrial structure to attract foreign direct investment change was not significant.Based on the empirical results,this paper puts forward the corresponding policy Suggestions for the central region: continue to focus on economic construction and vigorously develop regional economy;We will further improve the level of opening-up and improve the environment for foreign direct investment.We will accelerate the upgrading of the industrial structure and encourage the development of high-tech industries.We will continue to strengthen infrastructure and improve transportation capacity.Excavate surplus labor force,improve labor quality.