Determinants Of China's Foreign Direct Investment Analysis

With the increasing of its outward direct investment (ODI), more and more scholars have been attracting by China's ODI. Considering its unique institutions and economic transition, although some achievements have been made, these still lose their power in explaining the ODI behavior of Chinese firms. Based on the view of state interests, the article mainly discussed the determinants of china's outward direct investment through empirical and positive analysis.The emphasis of this article is trying to answer the following tow questions:(1) what changes have been happened in the china's ODI behaviors; (2) what determines these changes? Combined the empirical and positive analysis, the first three parts analyzes the current situation, features and motives based on recollecting the related theories. Then, the forth part adopts panel data model to test the determinants of china's ODI, and finds that china's ODI shows the significant resource seeking and technology seeking which are important parts of state interests, as well as geographic proximity and export oriented; the fifth part elaborates the relations between the state interests and economic interests of china's international firms and emphasizes their intrinsic unity; the final part, guided by these studies, gives some suggestions on realizing the interests of both China and its international firms.