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The Analysis On Determinants Of The Logistics FDI In China

Posted on:2010-03-28Degree:MasterType:Thesis
Country:ChinaCandidate:Y LuoFull Text:PDF
GTID:2120360278473511Subject:International Trade
Abstract/Summary:PDF Full Text Request
With the development of china's opening policy of tertiary industry, we also have made great progress in the FDI of service industry. The logistics is one of the important parts of service industry, the direct investment of which will not only improve the logistic network which can help to induce more FDI of manufacture industries, but also will help to introduce advanced techniques to promote the development of local logistic enterprises. The major purpose of the study is to analyze the determinants of MNE's FDI of logistics industry in China in order to attract more FDI of that aspect.Based on the theory of Dunning's eclectic theory of international production, the study mainly analyzes the locational advantages of China as well as the competitive advantages and the internalization advantages for transnational logistic corporations. Then the article concludes the major factors needed to be analyzed in the empirical research, in which the selected variables will be conducted by the cointegration test, granger causality test, generalized impulses analysis and variance decomposition. The final result of the empirical test shows that the domestic GDP, the inflow of manufacture investment and the level of infrastructure of China has a positive influence on the inflow FDI of logistics industry.Presently, the global financial crisis has affected the real economy with the shrinking global investment. For China, the financial tsunami will bring challenges as well as opportunities for the development of the domestic logistics industry. In fact, we need to introduce the foreign investment to nurse the local logistics enterprises and improve the logistic industrial chain of China under such a grim economic situation. According to the study, in order to attract the FDI of logistics, we need to expand the domestic demand, fulfill the infrastructure construction, strengthen the cooperation with the developing countries and improve the related expertise in logistic industry.
Keywords/Search Tags:FDI, logistics industry, the eclectic theory of international production, cointegration test
PDF Full Text Request
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