Research On The Spatial Evolution And Path Transfer Law Of FDI

According to the report of the 19th National Congress of the Communist Party of China,the main contradictions in China have been transferred into "the contradiction between the people’s growing need for a better life and the inadequate and unbalanced development".Meanwhile,the differential distribution of Foreign Direct Investment(FDI)in China is the representation of this "unbalanced" development.With the deepening of open development concept,the scale of FDI in China has gradually expanded,and the investment scale ranks second in the world and first in developing countries.The role of FDI in the local economy is becoming more and more obvious.Thus,the use of foreign capital in China is also being transformed from a single investment to a model of combining investment,technology and intelligence.Which means,studying the location evolution and path selection of FDI in China’s regions since the reform and opening up,we can not simply separate the provinces and cities for research,and we can not use the "rough" regional division of the eastern,central and western regions for classification.Therefore,according to the FDI situation and spatial location of each province and city,this paper divides 30 provinces and cities into six regions,and the research on location evolution and path selection is analyzed based on this standard.This paper takes the actual FDI data of various provinces and cities in China from 1985 to 2016 as the research objects,and uses the index to measure the use of FDI in the region to analyze the development history and current situation of FDI in China since the reform and opening up.Also,it uses the geographical concentration index to make a concentration analysis of FDI across the country and the six regions.After using the Theil index to analyze the differences in the location of FDI between the six regions,it is found that the distribution of FDI locations is highly concentrated towards a gradual diffusion.In order to propose the path selection suggestions for the provinces and cities in the six major regions,this paper separately analyzes the factors affecting the location selection of FDI in the six regions.Combining the theoretical basis and empirical literature analysis of the location advantage theory in the Dunning eclectic theory and Vernon’s product life cycle theory,the four factors of cost factor,market factor,agglomeration factor and institutional factor,and eleven indicators are the factors affecting FDI.According to the significance of the regression results,the different influencing factors of FDI in the six regions were measured,and according to the respective results,the path selection suggestions were proposed.