Empirical Research On The Characteristic And Performance Of Japanese FDI In Shandong Province

Japanese direct investment makes up an important FDI in Shandong province. Since China joined WTO, many multinational corporations readjusted their strategies of investment and management to incorporate China into their global business network, especially those from Japan. To seize the opportunity brought by the Japanese FDI in a new environment and speed up the economic development in Shandong, it is very necessary to research the Japanese FDI in Shandong province.This paper makes use of general analysis and typical analysis to study the characteristic and performance of the FDI by Japan in Shandong province. There are mainly five parts in this paper.The first part presents a general view of Japanese FDI in China and Shandong province based on the official statistics from China's statistical bureau, following the line of policy factor and investing environment.The second part adopts the comparative analysis and empirical analysis to study the characteristics and performance of Japanese FDI in Shandong. Firstly, by calculating investment indexes such as capital in-position rate, project average investment, investment intensity index, and inward FDI performance index, we can not only conclude the difference between Japan and other main sources of FDI in Shandong, but also find out the deficiency for Shandong to impose Japanese FDI, compared to other areas in China. Secondly, by introducing the current status of joint venture invested by Japanese Fortune in Shandong province, we can see the features on investment style, industrial distribution and regional distribution of Japanese FDI in Shandong.The third part mainly deals with the performance of Japanese FDI in Shandong province. On one hand, with the help of EVIEWS statistical software, we set up regression model and analyze the linear relation and Granger cause between Japanese FDI in Shandong and economical growth of Shandong. On the other hand, this paper ranks the performance and potential level of using Japanese FDI in Jiangsu, Guangdong, Shandong, Zhejiang, Liaoning, Shanghai and Shandong, on the basis of the calculation of inward FDI performance index and FDI inward potential index, brought forward by the publication of UNCTAD in 2002.In the fourth part, by making use of SPSS statistical software and adopting principal components analysis and factor analysis, this paper establishes the rating system to evaluate and compare the investment climate of seventeen cities in Shandong.In the fifth part, this paper summ arizes the difficiency and limitation for using Japanese FDI in Shandong province, and hereby make policy proposals.The contribution of this paper is as followed; firstly, although Japanese FDI in Shandong is of great importance, research on this issue is poor, which make this paper itself become a biggest contribution in this field. Furthermore, the combination of many analyzing methods such as general and typical analysis, quantitative and qualitative analysis, empirical analysis and comparative analysis, also make creative points in this field. Secondly, by making full use of calculation of several investment indexes, we find out the difference and deficiency and thus compare the characteristics and performance not only between Japan and other countries, but also between Shandong province and other areas in China. Thirdly, we select variables on the basis of regression analysis, adopt principal components analysis and factor analysis, so as to evaluate and rank the investment climate of 17 cities in Shandong province.