| Over the last two decades since China has carried out its reform and its open-up policies, china has absorbed enormous direct investment for its wide domestic market and great potential of development. Up till now China has become the No.1 developing country that attracts most foreign investment. These investments stimulate China's growth. But we must take into consideration that due to the unparallel geographical distribution of the investments, as well as the progress of the reform, there are new trends in the distribution. So what regional factors have direct influence on the distribution? How to look at the differences among the east, the west and the middle regions? What strategy shall we take? These questions are fully researched and discussed in this article. There are altogether four parts: 1. Theory: This part mainly demonstrates the definition of foreign direct investment and the theory of regional distribution. Up to now, there is no general theory of foreign direct investment. There are only schools of industry distribution, international direct investment and international trading. Regional theory mainly deals with the internal industry layout, seldom, direct investment. Traditional direct investments include the theory of advantageous monopoly of Hymer. Internalization of Buckly, Carson, Rugman, the theory of product life cycle of Vermon, and international product eclecticism of Duning. In addition to Duning, all the present international direct investment theories analysis the basic conditions of multinational corporations, they don't discuss directly regional matters. The innovative feature of Duning theory lies in the fact that it first included the "regional advantage".From the 1980's a group of economics further developed the theory of international direct investment from the angle of international trading, trying to establish the mode of direct investment and multinationals, but they didn't differ the multinationals and direct investments—they focused on multinationals. 2. The distribution of the foreign investments in China. This part deals with the conditions , features and new trends of foreign investment. Firstly, it begins with a brief review of the condition China absorbing the foreign direct investment, and then a summary of the features of investments distribution follows. The features are: 1,the foreign direct investments show a "high east low west"pattern.. Most of the investments flow into the east coastline regions and it is estimated that more than 87% were occupied in eastern regions. 2, the unbalance of the distribution in each three regions respectively. The new trends are: 1.In the past few years , foreign investments flow into the middle regions at a high rate. 2. More investments divert to the north from the south.. Why does this happen? What are the determinative elements in different regions? We are going to discuss in the following part. 3. Regional determinative elements analysis in foreign investments: Many scholars had given analysis of regional determinative elements, but no one had fully explained how these factors determined the shift of foreign investments. According to western Direct Investment Theory and our Chinese scholar demonstration analysis results, we get that the main factors that decide the invested regions are: cost element, market scale, centralization effect, policy element, geography culture influence ,and so on. Through the analysis we concluded that traditional regional advantages such as labor, geography, policy play an important role in forming the 'high east low west'pattern. But recently, influence of these factors have gradually weakened, while market scale and centralization effect have become important elements which caused the shift of investment from ZhuJiang Delta to Changjiang Delta. 4.Effect of foreign direct investment and countermeasures . Foreign direct investments greatly benefit our economy development, for... |
PDF Full Text Request