A Study On Spatial Differentiation Of Foreign Direct Investment And Influencing Factors In East China Based On The Globalization

With the development of globalization, capital flow becomes more and more quick in the world, and now, it has become a very important power influencing the world' s economy. China, as the greatest developing country, is facing enormous pressure brought by shorting of money, which compels us to look for help from outside. Based on the steady economy developing environment, giant expenditure market, low labor, China absorbs investors' attention while the fourth transfer are proceeding all over the world,. Opportunity and competition go a way. How to absorb foreign capital especially Foreign Direct Investment (abbreviated FDI) is need especially attention for us. Since 1978, East China have obtained great achievement on absorbing FDI. 12 provinces or cities in East China are the paper' s research object. The paper analyzes spatial differentiation of FDI through different aspects between the provinces or cities. Using Correlate and Factor analysis, the author hopes looking for the reason resulting in the differentiations and at last brings out some reciprocal suggestions for the East China and further for the Middle China and West China.(1) The spatial differentiations in East China are evident. Actually used FDI is assembled highly in Guangdong, Jiangsu and Shandong. But it is becoming scattering from clustering and FDI begin to flow to North China. Among the 12 districts, Fujian is the biggest and Hainan is the least on mean investment scale of FDI, and Beijing is the highest, Zhejiang is the lowest on the labor production rate of FDI. Tianjin is the biggest and Hebei is the least on both gross effect and capital form effect, on employment effect Fujian is the biggest and Hebei, Guangxi is the least;On trade effect, Tianjin is the biggest and Beijing is the least; On technology spill effect, Shanghai is the biggest and Liaoning is the lowest .(2) The primary factors influencing FDI spatial differentiations are the invention environment of technology and science, basic establishment, industry cluster, investment strength and market. Using Factor analyses, the 12 districts are divided into four different types: (1)Industry Production—Oriented —FDI District; (2)Technology Destiny—Oriented — FDI District; (3)Labor Destiny—Oriented—FDI District; (4)Potentiality —FDI District.(3) In order to improve East China further absorbing FDI, we should take the following countermeasures: (1)reinforce the strengthen of absorbing FDI from Europe and America in order to achieve the diversity of absorbing FDI; (2)utilize actively the respective cluster effects of the 12 districts and make industry structure more reasonable through absorbing FDI; (3)strength building of the basic establishment in the 12 districts;(4)guide the FDI of taking on technology activities based on encouraging national corporations to carry out technology; (5)improve the dependency of trade and expand exportation business; (6) fortify government investment and dredge latent market; (7)absorb more FDI through making use of respective extant and latent advantages of the 12 districts; (8)impulse multi — corporation to invest FDI of contain research and development activities on Shanghai, Jiangsu and so on.