The Location Choice Analysis Of Chinese Enterprises’ Outward Foreign Direct Investment

With the further development of economic globalization, as well as theadvancement of China’s reform and opening policy, enterprises in China have graduallyaccelerated the pace of "going out" and joined different kinds of foreign directinvestment activities actively. The increasing FDI activities have enhanced ourinternational competitiveness a lot, and also pushing the development of foreign directinvestment in China into the phase of rapidly rising. However, because of the debt crisis,the world economic environment is in the recovery stage, so how to take use ofresources wisely and make the best location choice is directly related to enterprises’international production layout and investment profits. Therefore, the location selectionproblem cannot be ignored. We still need to study and discuss this point in depth.Based on this, the article firstly summarizes the related theories and literature offoreign direct investment location choice, and then analyzes the present situation,regional distribution characteristics and existing problems of foreign direct investmentin China. On the basic of that, the article selects24countries worldwide that have closeinvestment relationship with China as samples, and take host country GDP, host countryGDP per capita, total trade value of host country and China, high tech exports of hostcountry and geographical distance between host country and China as variables. It uses5years (2008-2012) panel data, through gravity model and multiple regression analysis,finds out the relationship between FDI location choice and these variables. At last, thearticle puts forward some operational suggestions according to the empirical results,which are beneficial to our enterprises’ investment strategy generation, and have certainreference value to the location choice problem.