The Research On Relationship Of Attracting Foreign Direct Investment Between China And Asean Countries

With the continuous deepening of economic globalization and regional integration,foreign direct investment(FDI) has become increasingly frequent.China and asean countries are extremely similar in their geographical location,economic structure,cultural customs and so on.In order to attract foreign direct investment maximally,there are complex relationship between China and asean countries under the framework of China-Asean free trade zone.This paper try to analysis and discuss the relationship of attracting FDI between China and asean countries by econometric model.Then put forward new ideas to promot sides win of FDI.In view of this,on the base of FDI correlative theories and the analysis on relationship of attracting foreign direct investment between China and asean countries, firstly,from the perspectives of the flow,source countries,industry distribution, performance index and potential index,this paper compares and analyses the current situation of attracting FDI between China and asean countries.Then builds two panel data models from two perspectives to research the relationship of FDI between China and asean countries.On one hand,from the angle of the investor,this paper selected FDI by countries of origin,geographical distance and so on from1995-2008to set up a gravity model and analyse the impact of asean countries’FDI on China’FDI;On the other hand,from the angle of the host countries,this paper selected asean countries’FDI statistics and China’FDI statistics from1991-2009to set up a panel data model and analyse the impact of China’FDI on asean countries’FDI.The empirical found that the correlation of attracting FDI between China and asean countries is mutually positive.Either party whose FDI increase is conducive to drive the increasing of the other party’s FDI.Meanwhile,both of their economic development status,market capacity, opening level and per capita level have positive effect on their attracting foreign direct investment.Geographical distance brings disparity between China’FDI and asean countries’FDI by countries of origin.The correlation of geographical distance and FDI by countries of origin is negative.That is to say,when geographical distance is greater,foreign direct investment is lesser.At last,the results of the analysis are summarized and the paper gave corresponding policy proposals on attracting foreign direct investment in China and asean countries in order to promote bilateral business cooperation and achieve win-win situation of FDI.