The Research On Location Choice On China's Direct Investment In African Agriculture

The history of China-Africa agriculture cooperation has been long time.In the content of economic globalization and market economy system,the form of China-Africa agriculture cooperation has changed from agreements on inter-governmental gratuitous aids to foreign direct investment under the market economy rule.With the policy-based leading and support from government,China's enterprise has broadened the field and amount of OFDI in Africa.More and more China's enterprises invest in African agriculture and broaden the region of the investment.African countries have complicated environment of economy,politics and agriculture,different regional advantages will have different attractions for OFDI in agriculture.How to choose the reasonable location is one of the important questions for foreign investment enterprise,which will have important effect on the scale,method and industry of OFDI,especially the benefits of the investment.Therefore,the study on location choice of OFDI in African agriculture is meaningful.Based on the Location Economics theory and the related environmental evaluation theory,the paper focus on the location choice for OFDI in African agriculture for our country enterprise.The paper mainly contains the following two parts:One part research and analyze the present situation of location choice of China's OFDI in African agriculture.Firstly,the part will present the whole image of the location of our country agricultural enterprise in Africa.Secondly show the proportion of agricultural investment in China's total direct investment in every country in Africa.Thirdly,study the location of China's investment in African planting,fishery,forestry and agricultural comprehensive development.The other part is about the study on comprehensive appraisal models of agricultural investment environment.The part contains two sections:One section is through setting 15 characters in 6 major categories,carry out the quantitative evaluation on agricultural investment environment of African countries.Apart from the characters measuring the market potential,quality of infrastructure construction,economic openness and governance level,the paper also consider the related agricultural characters,such as the labor,capital,land and land transaction costs.According to the composite score,36 national sample project are divided into four level countries:"optimal investment countries","lower optimal investment countries","lowest optimal investment countries" and "prudent investment countries".The other section is combined with the quantitative evaluation and the present location status to study the matching degree between them,and account for the consistencies and inconsistencies,in order to analyze and conclude the characteristics?motivation and existing problems of China's OFDI in African agriculture.The study found the most China's OFDI in African agriculture prefer to the county where has excellent agricultural investment environment,which is accord with the explanation of Location Economics theory.However,some agricultural enterprise established in some countries where had bad agricultural investment environment,they prefer to countries with excellent economic openness but high political risks,which results in China's OFDI in African agriculture is faced with high investment risk and the short of OFDI in countries with high agricultural investment potential.How to avoid the high investment risk and broaden the market is the key question for China's OFDI in African agriculture.