The Study Of Influence Factors On The Location Choice Of Multinational Enterprises

With the economic integration processing and the new development of international production, multinational enterprises have been largely in control of international trade, international investment, and technology transfer and so on. And multinational enterprises have gradually become a major force affecting the world economy than trade in some aspects of supplying goods and services to foreign markets and strengthening the international market ties. Multinational enterprises' positive influence of promoting the world economy have infiltrated into every corner of the world through international trade, technology transfer and international direct investment. China is the biggest host country of FDI in developing countries. On the one hand, it is necessary for China to maintain long-lasting appeal and cohesion to FDI, attract more and more foreign investment to promote economic growth; on the other hand, China's enterprises should implement the "going out" strategy to compete with foreign enterprises in international market. Therefore, we should use a new perspective and analytical framework to find further evidence of the analysis results with a different approach. As an important branch of economics, the new economic geography is a good method to study the location of multinational enterprises with the hypothesizes of monopolistic competition, economies of scale and transportation costs.New economic geography discussed the nature of economies of scale, transportation costs, factor mobility, input-output linkages and their interaction through the space explanation of DS model. Because of the unique path dependence of agglomeration, under the conditions of global integration, the degree of industrial agglomeration will be increasingly, and the prices of local production factors and commodity will tend to rise. Therefore, the imperfect mobility of local production factors and goods will make multinational enterprises to transfer their investment. Under the condition of economies of scale, industrial agglomeration and economic growth will change with transport costs. Therefore, the new economic geography provides a new theoretical framework and perspectives to study the location of multinational enterprises.The basic analytical framework of this dissertation is as following:Based on the review of the traditional location theory of multinational enterprises, we give the innovative study, and further give the new economic geography framework for location analysis of "Basic level-Market level-Knowledge Spillover level"; then we analyze the impact factors of new economic geography on the location choice in theory. Based on the theoretical analysis, we conduct an empirical test on the theoretical determinants of multinational enterprises location; Based on the theoretical and empirical analysis, we analyze the status in quo of China's multinational enterprises and foreign direct investment, then we put forward some policy recommendations of promoting China to attract more foreign direct investment and Chinese enterprises to go out.The principal innovation of this dissertation is as following:First, based on the new economic geography, the dissertation systematically establishes a new research framework in the location research of multinational enterprises:at the start of the new regional model and international model of new economic geography, we make general analysis. And then this dissertation gives the new economic geography framework for location analysis of "Basic level-Market level-Knowledge Spillover level", which is the first time in China.Second, based on the research framework, this dissertation analyzes the impact of economies of scale, transportation costs, externalities, trade effect, home market effect and knowledge spillover on the location of multinational enterprises, especially the impact on the location of multinational high-tech industry, which actually expands the technical externalities research of new economic geography.Third, this dissertation has absorbed the advanced research models and methods from domestic and foreign-related areas. Combined with Chinese data, this dissertation conducts some empirical tests. The models and methods, such as balanced regional wage equation, Conditional Logit Model and two-factor fixed effect models are rarely used in the domestic study.This dissertation consists of Chinese and English abstract, catalogs, introduction, text, references, postscript and some other parts.The first chapter is an introduction including the research background, research significance, research content and thesis framework, research methods and ideas as well as major innovation points. Body part is divided into six chapters, including:the second chapter is the theory and literature review including the relevant contents of the new economic geography and an review of multinational enterprises location studies; the third chapter is the general analysis including the systematic review of the traditional location theory, the innovation study and the "Basic level-Market level-Knowledge Spillover level " framework for location analysis. This chapter provides an analytical framework for the following sections; the fourth chapter is the basic factor analysis including the theoretical and empirical analysis of the impacts of economies of scale, transport costs and externalities on the location of the multinational enterprises; the fifth chapter is the market factor analysis including the theoretical and empirical analysis of trade effects, home market effect and the linkage effects on the location of multinational enterprises; the sixth chapter is the knowledge-spillover factor analysis including a detailed analysis of knowledge spillover effects of multinational enterprises location mechanism, a analysis of knowledge spillover effects of high-tech multinationals location and empirical test; the seventh chapter analyzes the status in quo of China's multinational enterprises and foreign direct investment, then we put forward some policy recommendations of promoting China to attract more foreign direct investment and Chinese enterprises to go out and compete with other multinational enterprises.