U.s. Direct Investment In China Analysis Of Factors Affecting

This paper tried to explore the inherent principle for the factors which affect FDI from America to China and constructed the model suitable for analyzing the above factors. Being different from previous study, this paper didn't intend to analyze it indistinctly but tried to judge the characters of FDI form American to China according to some connected classical theories and model of DS made by cuixinjian. it was namely decided by demand-side factors or supply-side factors. We were sure that FDI from America to China was decided by demand-side factor through proportion analysis and connection analysis. The following was the introduction on the location factors which is ready for the next step. The most important is how those factors had an influence on the FDI to China. After we had a comprehension about location factors and FDI from America ,we would enter into the empirical study .in this sector ,owing to the large amount of factors ,it is impossible to cover all the factors in model .we choosed some important factors including sizable market, industrial conglomeration, cost of labor, infrastructure, exchange rate, favorable policy. in order to ensure the nicety of the conclusions. We made great efforts on the disposal of the data and adoption of the computation measure. The results for American investors regarded the sizable market as the important factors .low-wage labors, comparative advantage factor, wasn't significant .American investors were more sensitive to the change of exchange rate. in addition, Favorable policies promoted the investment from America to some extent. At last ,we gave some policies, I hoped those policies could be helpful for upgrade our competence abilities on attracting FDI from America.