An Empirical Study On The Location Choice Of China 's Direct Investment In Latin America And Its Influencing Factors

Under the conditions of economic globalization, since reforming and opening to the world in China, foreign direct investment (FDI) has become the most important way for China’s economic development, Latin America as China’s second direct investment destinations, undoubtedly attracted worldwide attention, researching Chinese enterprises in Latin America investment motives, it really help which Chinese enterprises invest again in Latin America in the future.Firstly, the paper reference the correlation research fruit of foreign and home background, comprehensive survey as the basis to explain the economic and trade cooperation between China and Latin America, direct investment by Chinese enterprises to Latin America, such as the scale of Chinese investment in Latin America, investment area distribution, investment characteristics and mode, etc.Mainly through making demonstration analysis for the impact factors of outwards direct investment of China, Using the panel data GLS squares estimation method, regression analysis, choose the sample of10Latin American country between2003-2011to research the effect of China’s FDI in Latin America, mainly Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Panama and Venezuela.Empirical Research on the impact of Chinese investment in Latin America, the result of the regression we get the following conclusions:Firstly, the Chinese investment in Latin America are affected by negative correlation of market size (GDP); Secondly, bilateral trade between Latin America has a positive correlation; thirdly, foreign investment stocks and flows (FDiS, FDII) is the major factor impact in the Latin America for the Chinese enterprise, it play a positive correlation; Fourth, political risk (PR) and economic openness (OP) are the negative effects on Chinese investment in Latin America, even the different selection of the model variables, but according to the regression results is quite significant, therefore the regression model it taken as the good explanation of the impact factor of Chinese Investment in Latin America.Based on the qualitative and quantitative research and analysis results, we propose the problem and strategy of impact factor to invest by Chinese enterprises in Latin America, such as the recommendations for the Government and Chinese enterprises.