| On the ground of economy globalization, Foreign Direct Investment (FDI) has become the important factor in the country's development and academic and practical subject study. Investors are always basing the investment decision on investment location and environment which can bring them most profit. How improving investment environment to attract more FDI has become active demand for study.The introduction firstly looks back the situation of FDI in China, then explain the necessity of FDI and analyze general studying ways of FDI environment; secondly show the theory about FDI from international trade, direct investment theory, regional economics and country risk theory. Based on the theories establish model that the environment affects FDI, and put forward two hypothesis.Use the government books and statistical yearbooks to get the original data of 40 districts in Chongqing. Design indicator from the location, the economic condense and foreign direct investment. we analyze the data by Principle Component Analysis and abstract the main factors finally. In order to find out the relationship between investment environment and FDI, we use SPSS, then operate Reliable test. Finally use LISREL software to test the regression and factor analysis model.We find that the economy environment, institution environment touching on the company's daily operation, infrastructure environment, municipality and policy environment will affect the distribute of FDI positively. Meanwhile we find the characteristics of the economic condense will affect the relationship between the environment factors and FDI.Excellent region environment and economic condense affect foreign direct investment evidently and positively. These conclusions support the hypothesis. At last calculate and sort by size the scores of the factor of foreign direct investment in 40 districts in Chongqing. According to the result, we put forward advices to improve the investment environment in Chongqing. |
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