An Empirical Study On The Regional Determinants Of FDI In National Economic And Technological Development Zone

The establishment of National Economic and Technological Development Zone is an important economic policiy for the country's openness.During the past 30 years,the ETDZs created the country's GDP tenth and attracted nearly half of the FDI in the land of a thousand less than the country land.Now the ETDZs has become an important growth pole of the economic development of China.But there is a huge difference on FDI between all the ETDZs,which is harmful to the sustained and stable development of the regional economy.This paper creatively put the ETDZs as the research subject on FDI location choice.Apply the Theil index to study the difference between the actual utilization of foreign capital sources.Using factor analysis of principal component analysis to make the selection of the explanatory variables for FDI location more scientifically rigorous.At the end,we use panel data regression model group by group to compare different regions ETDZs' different factors.The paper firstly reviews the relevant researchs on development zones and FDI location.On the basis of a brief description about ETDZs,we explain the reason for choosing the national ETDZs as the research subjects.Next,after descriptive analysis the actually utilized foreign capital,we use the Theil index to find out that the difference between three regions is mainly caused by the difference inside the regions,not the difference between the regions.And this is a support for the subsequent panel data regression.Thirdly,combined with the existing research results and relevant theories we initially choose seven variables.And using factor analysis to verify that these variables can explain the FDI location very well.This is a compensation for the relatively weak FDI location theory.At the end,the use of sub-regional panel data regression enables us to compare the different factors in different regions.The study find out that the FDI location in ETDZs is not significantly affected by the openness.The size of the market and labor cost act differently in different regions.While the infrastructure,quality of labor,agglomeration degree and location has a positive impact on FDI,which agglomeration degree is the important factor.