| Global economy is popular, all country actively participate in international competition, using the global resources and market, develop their economies. Foreign direct investment as an important way of a country’s participation in the world economy, its size has grown faster. Chinese enterprises are also increasingly involved in foreign direct investment, China’s foreign direct investment is growing rapidly. As of 2013, foreign investment in our country in just 12 years increased nearly 40 times, Foreign direct investment flows ranked third in the world for two consecutive years. Foreign direct investment expansion give rise to academic research on foreign direct investment is increasing, the rapid growth of foreign direct investment and existence of various problems investment in China, research on Chinese enterprises OFDI has become the focus of such topics. From the perspective of multinationals, the choice of investment location is the first to consider in foreign direct investment. Location choice is parent countries to find the location of a specific area in order to achieve the desired investment objective of the process. This process is not only influenced by regional factors in the host country, in many cases, affected by their parent countries’ factors. How to find the best investment areas, or what factors affect foreign direct location choice, are worthy of further exploration.By combing foreign direct investment location ideological theory, We defined four types of investment, between the developed countries, the developed countries to developing countries, between developing countries, developing countries to developed country, and we combined with the global and China’s foreign direct investment to analyze China’s foreign direct investment. In this paper, we use mature, more suitable for the current situation of China’s Knowledge Capital model. Then we use panel data, selected 81 countries and regions in the 2004-2013 investment as research subjects to test China’s foreign direct investment motive. From the investment motive, not only host country’s but also parent country factors has influence on the choice of OFDI. The study found that most of China’s foreign direct investment is horizontal type of investment that enterprises investment in foreign countries to get a broader market. Market size, labor resource endowments, investment costs, trading costs will affect FDI location choice. To further explain, the paper also divided the sample into two sub-samples, developed countries and developing countries, for analysis the investment motives. Our study found that the investment to developed countries mainly vertical type, namely resource-seeking investment is to get local technology and skilled labor. Our investment in developing countries is horizontal type, that is, market-seeking investment in order to get a broader market. Finally, select the problems for China’s foreign direct investment position to analyze the results of the model, to give the rational distribution of foreign direct investment proposals and comments from the government level and the corporate level. |
