The Disparity Of Regional Investment Environment And Its Impact On The Location Choice Of FDI

Not only does the deepening reform and open to the world policy bring the high-speed growing economy, but optimizes the market environment in our country, where the foreign investment is in greatly rising enthusiasm with it, which causes China to be one of the largest countries attract foreign direct investment. After measured whether through stock index or flow index, the geographical distribution of FDI in China is extremely uneven. That of the eastern region is in an absolute advantage both in quantity and quality, while the nationwide structure has become formed that the most is in the east area, the central region followed and at least in the west. Has the distribution of FDI in China something to do with the wide gap among the investment circumstances in every area? How does each aspect of regional investment circumstances perform a function in the location choice of FDI? How should the Midwest government do to expanse the investment? It is these questions that this paper tries to do a systematic research on.Consequently, at first, the article analyzed the deficiencies of the current documentary research, defined the concept of regional investment environment and its factors again and established a more scientific and reasonable system of assessment indicators through reviewing the domestic and oversea research status. And then, it took advantage of a way integrated with standardization approach and coefficient of variation method to calculate synthesized scores of the investment environment in each province respectively and draw a comparison among various environment. In this comparison, we discovered the distribution does have something to do with the huge disparity among distinctive environment. Thus, we took use of the panel data of 31 provinces in China between 2000 and 2008 to do an empirical test on the relationship between regional investment environment and foreign direct investment further and via it, reviewed whether the environment affected the location choice of FDI or not and how the elements of environment exerted an influence on the choice. Finally, according to the conclusion from our empirical analysis, we brought forward some pertinent counter-measures and suggestions on how to improve and optimize the regional investment environment in our country and advance the quantity and quality of foreign investment in every area.Our innovation in this passage is listed as follows. On one hand, the concept of regional investment environment and its factors had been defined again and some factors, including industry agglomeration, were brought into a system of assessment indicators on investment environment, which cause a more scientific evaluation. On the other, we reviewed how every aspect of regional investment environment exerted an influence on the location choice and then brought forward some pertinent counter-measures and suggestions to improve investment environment in all provinces.