Affect The Distribution Factors Of Foreign Direct Investment In The Theoretical Analysis And Empirical Testing

Foreign direct investment (FDI), it is always a hot topic in the economics research. Recent years, china has changed its investment situation; it is no longer just a FDI-inward country. So what stir ODI, what are the determinants of the distribution of ODI in different countries and region.Firstly, we analyze the common situation about ODI in China. The analysis based on mass data, and it shows the feature of ODI development and distribution, in this way, we can understand more directly and deeply.Secondly, we review the determinant theory of ODI especially when the host country is the developing, then we analyze the home country, the MNC, the motivation how to influence the ODI especially to developing countries. Then, we analyze the mechanism of export, the environment of the host country, exchange rates which will be analyzed using empirical mode thereinafter.Thirdly, we analyze the distribution rule of ODI in different region with positive method. The data sets used were pane data set of 106 countries respectively, from the year 2004 to 2006.The results are as follows. Export is a determinant advantage factor of whole ODI without off-shore financial center, and GNP per capita and exchange rate are always dominant. Grouping by the level of GNP per capita, only export is the important factor while the host country is developed; population size and GNP per capita are key factors to developing countries; the lowest developing countries, GNP per capita is relative important determinant. Grouping by abundance of the comparative advantage resource, in the countries abounding in capital and knowledge, both export and GNP per capita are determinants; in the ones rich in work force and nature resources, export GNP per capita and exchange rate are influential to the distribution of ODI, but the extent is different in different countries.The conclusion is available and referenced for the country to make more effective policy and provide fitter service for ODI development.