Research On The Location Choice Of FDI In China And Corresponding Measures For The West

Since China's reform and opening up, Foreign Direct Investment (FDI) has been developing constantly. Its role in promoting economic development of china has been increasingly highlighted too. However, while the scale of FDI in China has been expanding, FDI in China has been regionally imbalanced, which further aggravates the economic developmental gap between different regions of China. To promote balanced development of FDI in all regions, it is necessary to study the location choice of FDI in China. This study will supplement and perfect the existing researches on the location choice of FDI, too.This thesis conducts a systematic research on this issue. It combines theoretical research and empirical research. At first, this thesis makes definitions for some concepts discussed in this paper .Then it reviews the relevant theories. After that, this thesis studies developmental process of FDI in China and the status of its location choice. Then this thesis brings forward factors that affect the location choice of FDI in china. After that, this thesis makes empirical analysis on these factors and analyzes their variation. At last, this thesis brings forward corresponding suggestions.This thesis mainly draws the following conclusions: FDI in China has been massing at the east of China for these years, but this concentrated status is weakening. FDI at the east of China centralizes on some districts too, and this concentrated status also is weakening. Factors that affect the location choice of FDI in china include market, basal facilities, labor force, collection, geographic location and the system. Along with time passing, the impact of basal facilities, labor price and opening on the location choice of FDI in China descends while the impact of governmental quality and market becomes more and more remarkable. The possible innovational points of this thesis read as follows: The thesis unites vertical analysis and dynamic analysis to study the location of FDI among provinces in China, and finds out that FDI at the east of China masses on some districts and this concentrated situation is weakening. The study on the variation of factors that affect the location choice of FDI in china finds that along with time passing, the impact of basal facilities, labor price and opening on the location choice of FDI in China descends while the impact of governmental quality and market becomes more and more remarkable.