A Study On The Location Slection Of Banking Industry Foreign Direct Investment

With the strengthening of global economic integration trend, our national banking starts to go global and actively expand foreign direct investment. In the process of the foreign direct investment, the correct location selection is a crucial aspect for the banking acquiring production factors and maximum benefits. Since the1970s, the western economists such as Hymer smith, Vernon and Dunning have had further research for the enterprise’s international direct investment and formed different theoretical system. The traditional foreign direct investment theory more or less, directly or indirectly related to the aspect of the location selection. However, the system research of foreign direct investment location selection, especially the banking foreign direct investment location selection has not been concerned.We selected Chinese banking as the research object, combined theoretical analysis and case analysis method, studied the location selection of the national enterprise’s foreign direct investment. Based on the OIL paradigm of Dunning’s theory, taking quantity of China branches in the international market as the independent variable and impact factors influencing the Chinese foreign direct investment as the dependent variable, we set up the multiple regression model based on panel data. Comprehensive analysis the main factors which influence foreign investment location choices of commercial Banks in China, we can get that the first factor is bilateral trade volume and psychological distance between the host country and China, fully demonstrated "follow their customers" is our primary reason of banking on FDI location choice.Finally, combined with foreign direct investment location choice practice of ICBC, this study summarizes location choice features of our banking industry’s foreign direct investment at the present stage: first, location choice excessively gathers and internationalization is still in the early stage. Second, adjust measures to local conditions, carry on diversified development strategy. Three, use various agencies investment. Then, based on this, we put forward relevant suggestions of foreign direct investment location choice in service industry: first, rely on Hong Kong、Macao and the Asia-pacific region, unfold the global strategic layout; Second, deepening layout in Euramerica and other developed area; third, promote emerging market, such as Africa.