Research Of FDI Location Choice In Beijing-Tianjin-Hebei

Location choice of FDI is not a new topic, but the former academicians considered the topic with different views and used different methods and datum to analyze it. So far, there is not a mature theory about location choice of FDI. On the other hand, the diversity of the regions and varied favor of the foreign companies are also the important factors.In recent 30 years, the location of FDI is dynamic changing with deepening reforming and opening and gradient transferring policy. At the beginning, FDI congregated in Pearl River Delta ,then transfered to the Yangtze River Delta. As the economy of the two regions developed very fast and the foreign companies accumulated too much, the investment cost there is increasing. So there is the trend of FDI towards the north and west. Beijing-tianjin-hebei is the core to connect the south and north, the east and west, so it must be the focus region of the trend. I chose the FDI of this area as the object, expecting to find out the factors influencing location choice of FDI and how to attract FDI in a better way.According to studying,summarizing and complementing the former literature about location choice of FDI, there is coming into being a frame for analysing the location choice of FDI in Beijing-tianjin-hebei in this thesis. There are four kinds of factors that influence location choice of FDI, including market, cost, accumulation and policy. According to empirical study, I find out there are differences in utilizing FDI among Beijing,Tianjin and Hebei. In observing period, the value of Theil which is used to evaluate the regional difference of Beijing-tianjin-hebei is fluctuating, but the fluctuation is going to be steady and convergenting between (0.2,0.3), which means the differnce of location choice of FDI among Beijing,Tianjin and Hebei is decreasing. In order to find the reason the differences exist, that is; the factors which influce location choice of FDI in Beijing-tianjin-hebei, the thesis chooses four factors as the foundation and builts the index system to evaluate the location choice of FDI, using the mothod of Principal Component Regression Analysis.Throughout the analysis, it is proved that accumulation is the premier factor and market and cost are following while policy has certain influce in course of marketization. During the "Eleventh Five-year" period, Beijing,Tianjin and Hebei should bring up and expand their preponderant industry to form accumulations; they should make effort to realize regional integration, including integration of industry, integration of element, integration of market and integration of infrastructure. Thus, the region will build regional advantage complement and obtain the resultant force to attract FDI; The government should show their harmony function actively to creat the low investment cost environment.