Regional Differences And Influence Factors Of FDI In Hubei Province

FDI, the principal part of global capital flow, has been through a persistent overheating since the economic globalization began. Also, it is the dominant way for China to absorb foreign funds and thus plays a decisive role in China’s economy. At present, the FDI in Hubei province is at a remarkable growth stage and thus make it the bellwether in this area in central China. Whereas, comparing with the leading units in China, there is still a considerable gap for Hubei to catch. Therefore, exploring the spatial pattern and influence factors of FDI in Hubei province and thus drawing proper proposals is of a paramount significance for its better development in future.Focusing on the spatial pattern of FDI in Hubei province, the GIS tool was introduced to depict the status expression and interior gap from aspects like spatial distribution and performance index. Considering its evolution process and status expressions, A index system was established to explore its influence factors. With the help of regression function in SPSS 19.0, the respective influence index of each factors was calculated. The results shows that cost, including labor quality and transportation expense, as well as aggregation, including GDP and industrial enterprises’ sales revenue, are the prime factors for FDI to follow. Therefore, to attain more FDI, strategies like improving the investment environment, optimizing the industrial structure which FDI favors, enhancing the aggregation effect and reinforcing the construction of talents should be considered.