Research Of International Investment Development Stage Of China Provincial Region

Under the background of economic globalization, it is very common that multi-nationalcorporations become the carrier of the international investment. As we can know that in2014,China may become a net exporter of capital on the21stCentury Economic Report, soon or laterChina will come to capital output stage. However, FDI situation of the provinces and cities ofChina is uneven. Compared with Zhejiang and Tibet, which represent the east and south provinces,for example, in2013the actual utilization of foreign investment in Tibet is only$100million,however, Zhejiang reached14.16billion US dollars, which is hundreds of times in Tibet.Meanwhile, Tibet’s outward foreign direct investment is just$220,000while Zhejiang reachs the$2.55billion. International investment in coastal areas also have different situation, OFDI ofGuangdong Province reached$5.9billion, of which only Shenzhen reached$3.3billion, inaddition, the actual use of foreign investment reached$24.95billion, nearly1.76times that ofZhejiang.To explain this situation from a theoretical point of view, this article introducedDunning’s IDP theory, using different stages of development investment to describe the interprovincial FDIdifferences. Whether the IDP theory is applicable to various regions of Chinaremains to be further studied. Through empirical research, this paper verified the IDP theory canbe applied in China provinces, which means the investment development stages of IDP theory canbe used to describe the development of Chinese regional multinational investment. Further more,the comparative study showed that five function model is more applicable.In such cases, with the help of IDP theory’s five stages and it’s explain of stagedetails,we build the scatter plot to analyze the investment develop stage of31provinces from2004to2013,which combined with J curve model.According to the research of the above, the paper explores the influencing factors ofinternational investment to extend the theoretical model of the IDP. Therefore, this paper studiedthe related international investment theory and OLI theory to find out the five factors to extentIDP model. The research shows that the knowledge and technology level, the quality of population,the ability of the government allocation of resources and the degree of state-owned enterprise will have a significant impact, the level of transport infrastructure resulting in some of the impact.Finally, the article suggests that different provinces should improve their stage ofinvestment development through the above several aspects:(1)Encourage the knowledge andtechnology research, promote the innovation ability;(2)Balance the traffic infrastructure level,prevent the overload transportation;(3)Improve the quality of the population, increase investmentin science and education;(4)Make use of the allocation of resources, adjust the degree ofnationalization. In addition, each province shall respect its own characteristics. Especially not toblindly follow other better developed provinces.