Research On Influence Factors Of Location Selection In Chinese Outward Foreign Direct Investment In EU

The economic growth and irrational economic structure is the main problem now the Chinese economy faced.China needs to adjust the industrial structure and seek new economic growth point. Foreign direct investment is the way of outputting production capacity and improving the industrial structure.It plays a significant role. Meanwhile, foreign direct investment is the main means of obtaining a strategic resource such as advanced productive forces, advanced management techniques and so on. Trade barriers hinder China’s huge amount of international trade, foreign direct investment can effectively offset the trade barriers. It plays an increasingly important role in China’s economic transformation.Under the background of economic globalization, This paper is a study of China’s direct investment in EU. In stages, from 2003-2006, the flow of Chinese direct investment is concentrated in limited countries, such as Germany, France and the United Kingdom. In 2007-2009, before the debt crisis broke out, China’s steadily increased in direct investment to Eu countries.In 2010-2014, economic experience of EU national has pain and slow recovery.Under the Europe debt crisis,European assets of devaluation makes China on EU direct investment reached new level, the stock has been steadily fast rose. Based on mis background,we began from regional factors, analyzing the location choice of FDI in Europe, then summarize the investment regular pattern and the explanation of the regular pattern.In this paper, we chose 28 European countries’ 2007-2013 panel data, introduced log-linear model; Selected stock of domestic credit,technology index, the stability of the real effective exchange rates, the level of bilateral trade, Per capita Nominal GDP,intemational country risk index, the host country’s surrounding OFDI stock to do empirical analysis. The empirical results show that the Std and Icrg have negative effect;Sdc,Tec and Tra are positive;Agdp and Wofdi are positive,but they are quiet.Finally, according to the third part’s results,we put forward six suggestions. First, Focus on considering "combined effect". Second, Chinese enterprises should enhance the attractiveness of the product.Third, Improve the structure of trade.Fourth, Extend the source of capital.Fifth, Chinese enterprises should strengthen the consideration of risk factors.Sixth, consolidate bilateral trade and continue to expand the scale of investment.We hope Chinese enterprises begin from the sixth aspects, and develop Chinese direct investment steadily.