Our Measurement Of FDI Locational Factors Affect Research Space

The importance of the Foreign Direct Investment in promoting China’s economic development is unquestionable. In recent years, large-scale foreign direct investment came into our country not only effectively alleviated the shortage in modernization funding problems, and also created a lot of employment opportunities, brought a lot of advanced technology and management experience to China’s economic development, and greatly promoted China, especially in export-oriented coastal economy, to development. But it should be noted that in the background of the reform and opening, there was a serious structural imbalance in using the foreign investment in our country, this imbalance was also a directly result of the growing Midwest and Eastern regional economic disparities. With the development of the Central and the Western,the imbalance has been changed, but overall, the gap was still significant. Therefore, many scholars has made a lot of work for the choice of FDI location, and basically gets some preferential policies such as infrastructure, the degree of market development, national income and wage levels and so on. But look at the studies of FDI investment at both home and abroad about the regional distribution, I am afraid that the result of their researches are questionable, the performance at least as following three things:Firest, previous literature research units tend to be viewed as a homogeneous whole, the amount of data commonly used (cross-section or panel data) for analysis, it did not consider the differences between regions and the impact of the interaction between the regions, and thus in when doing analysis on the direct assumption that the cross-sectional units are homogeneous, that there is no difference between regions or businesses. However, due to the geographical distribution of FDI heterogeneity, accumulated FDI in a country or region is usually dependent on the (affected) countries or regions surrounding the accumulation of FDI, FDI provinces spatial spillover effects (externalities) that can significantly affect the adjacent the regional distribution of FDI. So if there is space effect, then there can spatial distribution of FDI in other provinces as exogenous given. Thus, designing and conducting empirical research model, if the lack of space variables will inevitably lead to the omission of important variables and the deviation of the results.Second, this assumption is based on the mean, we can speculate that most of the studies (policy recommendations) also has a universality that considers all significant factors for any one region, its role in the size and direction of action are consistent. But in fact, due to the economic level of development of the various regions, regional characteristics, etc. are dissimilar, thus influencing factors affected their FDI activities are not the same. If the study on China’s FDI is limited to the overall level, the result obtained is limited to the overall level, and for some areas, individual provinces, its applicability is questionable.Third, the present study, the factors influencing the distribution of FDI location for a variety of statistical significance, into the overall analysis from the perspective of the supply and the demand side analysis of the two forms, summed up in about a dozen impact categories, forty several variables parameters. However, these factors in different research methods, different parameters under study variables, the results they get are often diametrically opposed, so divergent views. The reason is that the investigator based on different samples of different parameter settings will result obtained vary results.Therefore, this according to the above three questions, give specific improvement measures:First, based on traditional research methods, the provinces of our country, FDI value of each year of the spatial correlation analysis, which give the spatial impact the existence of role; second, based on the spatial econometric theory, each of the provinces of FDI as explanatory variables, the cross-sectional data for11years,30of China’s provinces in2000-2010spatial econometric analysis, which focused too the variable factors in FDI location choice in a significant degree of its mode of action; third, these11-year impact factor values for each variable plotted as time trend, whereby FDI location choice of the factors affecting changes derived trends, draw each factor stability and variation over time; finally estimated by GWR analysis, the degree of influence of each factor on the different provinces; Finally, the corresponding policy recommendations targeted.Ultimately concluded that spatial factors play an important role in the geographical distribution of FDI, especially in the east coast and the Northwest Territories, the spatial correlation has a very strong level of significance. Followed by the regional economies of scale, the degree of openness, technology level is the most significant and most stable factor of FDI location distribution of, and the degree of market, economic growth potential, government incentives and other factors, the role of the degree and direction of action with the change of time and are in constant flux, and showed no stability in time. Third, the three northeastern provinces, the Yangtze River Delta, the Bohai Sea and other relevant provinces severely affected by economies of scale, openness and other factors, and the Pearl River Delta, Southwest and Northwest provinces are affected by the level of consumption, more intense level of technology. Finally, the spatial characteristics of the region concluded: Overall, the eastern coastal region, the Northwest region due to the higher spatial autocorrelation, economic development should be complementary to the main economic zone to attract foreign investors to establish settled; on local terms northeast, the Bohai Rim and the Yangtze River Delta region should further enhance market-oriented, strengthen environmental protection and improve the degree of market concentration led to measures; central eastern region jointly advised to upgrade skills and enhance the degree of opening of the main measures; Pearl River Delta, southwest and northwest provinces should continue to improve infrastructure and develop high-tech industries as the main measure to absorb foreign capital.