Study Of Regional Investment Climate Evaluation

The international capital flows in China stupendously in 21 century, and as a host country of multinational invests China becomes more and more attractive. But the distribution of FDI in China is unbalanced. The east China has absorbed absolutely most of FDI flowing in China when middle and west China get a tiny part of the whole FDI. Apparently, the difference of FDI absorbed ascribes to the difference of investment climate. Generally, the region's investment climate is an integrated system which composes of all factors and conditions that influence the investment activity in a region or an economic entity in a period of time. It's complex and includes almost all things of a region. Currently, the competition of absorbing FDI gets more and more drastic all over the world while the competition of investment climate is becoming the key. So government of every country makes a point of improving investment climate. Actually, we can regard a region's FDI as a function of all factors of the different region's investment climate. So why there are tremendous differences among region's FDI of China? How are the differences among different region's attraction of FDI? Further, how to improving the investment climate can make absorbing FDI easily and promote region's economy. I try to constructs an integrated and steady general evaluation system which is used to evaluate the investment climate of FDI. Firstly, I summarized and appraised related literatures, constructed a general evaluation system of investment climate, which included 28 indexes. And it composes six aspects of market, human resource, government power, infrastructure, habitation and Information technology. Then choose 236 cities as stylebooks and collect needed data. Using factor analysis I analyzed the indexes and data, and computed the scores of cities'investment climate. I gave a relation model between investment climate and economy based on literatures and experience. Then I validated the availability of the model using SEM(structural equation model ) and validated the applicability of the evaluation system of investment climate accordingly.