The International Expansion Of Producer Services Location Choice Research

International expansion of producer services is an important part of services globalization, and an inevitable result of industrial restructuring in the process of economic globalization. The mechanism is that economic globalization means factors such as capital and technology are globally configured, which leads to international expansion of Industries. Especially, manufacturing FDI needs support service of producer services like finance, insurance, technology, information, logistics and others, which boost the international expansion of producer services.Although the international expansion of producer services relies on the manufacturing sector, its causes, characteristics, path and impact differ from manufacturing FDI.In the past 30 years, international business literature has focused on the manufacturing FDI, and little attention is paid to services, particularly producer services. According to domestic related literature, I can found that the domestic related research about producer services, especially its international expansion country selection is just started, This research doesn't start all over again, but under the guidance of the classical location theory of FDI gives an analysis of the host factors of producer services international expansion location choice, identifying its similarity and unique in comparison with manufacturing FDI location factors and testing the applicability of classical theories of FDI, which will bring supplement, improvement and new ideas into the FDI theory.By combing the classical theories of FDI and relating location ideas, this study found that with economy globalized, market-oriented, and communications technology growing, classical FDI theories, such as comparative advantage theory, product life cycle theory and international production eclectic theory, are not enough to explain specific phenomenon of the international expansion of producer services, it has its special features.This research should address the following questions:1. what are the causes, characteristics, barriers and trends of producer services international expansion?2. What are the host factors that influence the country selection of the international expansion of producer services?3. What are differences among location choices of international expansion producer services, manufacturing and consumer services?4. What is the difference of host factors in different type producer services?5. How can Shanghai attract more FDI of producer services?Except chapter I, this study falls into seven chapters, the contents of which are as follows:Chapter II: An analysis of related theory of producer services international expansion. It summarizes the theoretical development of international direct investment and relating location ideas, and then explores the applicability of classical theories of FDI to producer services international expansion. The second part is the review and comments of the research literature at home and abroad.Chapter III: Motives, barriers and characteristics of the international expansion of producer services. Motivations are divided into external motivation and internal motivation, and barriers into internal barriers and external barriers. International expansion characteristics are divided into industry features and geographical features. The future trend is forecasts of the international expansion of producer services in terms of size, form and location distributionChapter IV: Location choice theory model of international expansion of producer services. This chapter discusses the host factors affecting the location choice of the international expansion of producer services, and intrinsic links of these host factors. At the same time, it compares international expansion location choice of producer services with other industries, highlighting the generality and uniqueness between them. On the basis of the above-mentioned, this chapter constructs location choice theory model of producer services international expansion.Chapter V: An empirical study of location choice of producer services international expansion. This chapter is the empirical study of last chapter. It selects randomly 650 producer service MNEs in Shanghai, conducting a questionnaire survey, making depth interviews with some company executives, and then gives an AHP to the data from recycled questionnaires, by which theoretical analysis of last chapter is substantiated Chapter VI: case studies of the international expansion location choice of producer services. This chapter selects transnational banks and multinational R&D as cases, giving a probe into motives, processes and geographical distribution of international expansion of two industries, making up for deficiencies of theoretical analysis of previous chapters.Chapter VII: Location analysis of producer services international expansion in Shanghai. This chapter belongs to the expansion of the study. On the basis of analyzing the status and problems of producer services expansion in Shanghai, it points out Shanghai's location advantages and disadvantages, and gives policy recommendations on how to draw more producer service FDI. Chapter VIII: Summary. Summary include: research findings, innovations, deficiencies and future research suggestion.The conclusions of this study support the contingency put forward by Erramilli, Ekeledo and Sivakumar and other scholars, that is, services FDI location choice is different from manufacturing sector, mainly due to the unique characteristics of services. Similarly, according to this study, features of producer services itself is also main reason of its international expanding location choice differing from manufacturing and consumer services FDI.The theoretical model constructed in this study can help producer service MNEs with selection of host countries, making business goals and host characteristics as consistent as possible. The model helps the producer services to integrate a number of host factors by sorting and weighing, accordingly makes final decisions of priority investment in some countries and regions.The practical significance of the study mainly lies in two aspects: First, it gives theoretical guidance to producer services trying to get out of the door in developing countries; secondly, it gives theoretical guidance to developing countries and cities trying to attract more producer services FDI.