Empirical Analysis Of Regional Factors Of The Taiwanese Corporations’Investment In Huan Bo Hai Area

In recent years, as the signment of ECFA (2010) and Eleventh National People’s Congress session, Minister of Commerce Chen Deming proposed a series of preferential tariff reductions, Taiwan businessmen to the mainland market is generally reported to have a positive attitude. Now, the mainland has replaced the United States as Taiwan’s largest trading partner and largest export trade. As the bridge of striat economic exchange, Taiwan businessmen promote the "three direct links", adjust and upgrade economic structure, promote cross-strait mutual benefit and get win-win. However Bohai Sea in northern region has been represented by accelerating the rise, and has become the Pearl River Delta and Yangtze River Delta after the third national strategic planning area. Around2014, Circum-Bohai-Sea could become the highly influential economic uplift zone in Northeast Asia." The survey howed that over50%of Taiwan will start to increase investment in the mainland in the next3-5years. About29%Taiwanese market targeting the Bohai Sea region and the growing trend of Taiwanese investment northward. In this context, the paper is aim to empirical analysis the locational factor of affecting Taiwanese investment in the Bohai Rim and giving some recommendations to optimize future Bohai Rim Taiwanese investment.The content of this paper includes five parts:First chapter, explained the background, significance, content, method and framework. Second chapter, this paper has defined the core concepts of the Taiwanese corporation, the investment of Taiwanese corporation and Huan bo area and review the Direct investment theory and location choice theory. Third chapter, business investment in the Bohai Sea region history, characteristics and industrial structure. Fourth chapter, using PANEL DATA regression model to make a empirical analysis to impact Taiwanese business investment in the Bohai Rim’six dimensions locational factors. The results showed:(1) the Bohai Rim location factor variables affect different phases (current, ph lagl, Iag2) Taiwanese investment;(2)lag of infrastructure the Bohai Sea region, agglomeration economies and government institutions have significant impact on Taiwanese investment;(3)Current cost factors and lag cost factors of Bohai Sea region have different impact on Taiwanese investment. Fifth chapter, Summarizes the main conclusions of the study, present the Bohai Sea region how to absorb Taiwanese investment in the future, and pointed out the lack of research in this article and future research directions.