Fdi Entry Mode Evolution Research

With the deepen of open policies, China is becoming one of countries FDI flux most, entry modes of Chinese are evolve from joint venture(or co-operation) to solo proprietorship. As entry mode choice is multinational enterprise' important strategic decisions, different entry modes not only influent performance, but also influent host countries' market structure, industry upgrade, realization of international imbalances and taxes, thus evolution of FDI entry modes have been focused on by scholars. Study aiming at such phenomena is mainly qualitative analysis while short of empirical research, for offsetting the deficits, this dissertation takes Jiangsu for example to analyze empirically from the angle of entry modes influent factors of Chinese FDI.Firstly entry mode and its evolution is defined, static game model of FDI entry mode is further modified based on literature review, tendency of solo proprietorship and alteration of control right of joint venture is demonstrated methematically. Finally the dissertation brings forward assumption, and makes empirical analysis of four factors influencing entry modes evolution of Jiangsu's FDI such as open degree, market-orientation, market scale and industry structure. Research on Model and empirical analysis forms some creative conclusions as follows:(1)Evolution of FDI entry modes is correlated with proprietary extent of each player's resources, alteration of control right is positive correlated with the first resource of host country; the greater proprietary extent of the second resource and the greater bargain power of host countries' enterprises and government, solo proprietorship is more easily restricted. Furthermore, alteration of control right of joint venture is negatively correlated with proprietary extent of the second resource.(2) The higher coordination costs are, multinational enterprise is more likely to choose solo proprietorship to internalize in order to elude management conflicts, but coordination costs have no impacts on stock equity change. Taxes have no impacts on evolution of entry modes for the sake of assumption of tax indifferences between solo proprietorship and joint venture. Transaction costs are negative correlated with tendency of solo proprietorship when multinational enterprise obtains specific resource characterized by incomplete market.(3) Empirical analysis indicates that among factors influencing tendency of solo proprietorship of Jiangsu's FDI, only open degree is positive correlated with tendency of solo proprietorship, while market-orientation, market scale, industry structure isnegative correlation.