Foreign Direct Investment In Wholly-owned Enter The Tendency Of Empirical Research

When China's foreign investment policies become more open and multinational companies have more knowledge about China's market, more and more multinational companies choose to establish green-field wholly-foreign-owned companies to enter into China. According to the statistical data provided by Ministry of Commerce of the People's Republic of China, the number of wholly-foreign-owned companies has exceeded joint ventures' in 1997 for the first time. And since 1998, wholly-foreign-owned companies have been more than joint ventures in the contractual value of foreign fund. As to the actual utilized foreign fund value, the proportion of wholly-foreign-owned companies surpassed joint ventures' in the year 2000 with a rising trend. And this trend became much more obviously, after China joined in WTO in 2001.On the basis of summarizing foreign and local scholars' research about transnational investment and FDI entry mode, author of this thesis collected China statistical data in last 21 years and then use PEST frame to establish China's macro operating environment model and empirically analyze how it affected the entry mode of foreign direct investment to China. In this empirical analysis, we firstly classified the statistical data into four groups: political, economical, socioculltural, technological factors and then established a multiple linear regression model to test correlativity between wholly-foreign-owned entry mode and the chosen variables. Calculated by SPSS 11.5, we can get the results like this: GDP index, foreign trade dependence degree, the proportion of non-state-owned economy in the gross industrial output, annual value of China-foreign economic and technology cooperation agreement and the ratio of education expenditure to GDP which used as quantitative index of political, economical, sociocultural and technological factors are positive correlated to the tendency to wholly-foreign-owned entry mode. Foreign investors' choice of wholly-foreign-owned enterprises will be an inevitable trend.According to results of this empirical analysis, we described the positive and negative influence of the tendency to wholly-foreign-owned entry mode and gave some suggestions on how to utilize positive effects of the wholly-foreign-owned enterprises and how to limit their negative influence on the basis of actual conditions in our country.The extra-ordinary features of this thesis is using PEST model to analyze China's macro operating environment and establishing a multiple linear regression model to do empirical analysis on preference to wholly-foreign-owned entry mode. By this method, all factors have been classified into political, economical, sociocultural and technological parts. So it can explain the relationship between the wholly-foreign-owned tendency and China's macro operating environment more comprehensively. However, there are some parts that can be improved, such as how to choose the independent variables more properly. Macro operating environment is a comprehensive, complex factor and difficult to be measured. Therefore two or three variables can not wholly or exactly reflect the change of macro operating environment during the 21 years. That's to say, we need to go on the empirical research much more exactly in the future.