Study On Industries And Location Choice For OFDI Of Jiangsu Province

The global economic recovery has slowed down and stepped into the “Post QE era”. The global international trade and investment showed a restoration of growth.All countries need to fully grasp the domestic and foreign markets for proceeding foreign direct investment, in order to strengthen the global communication and cooperation. It also can help the countries integrate into the global economic network better. In recent years, the OFDI of Jiangsu Province has developed rapidly. The investment amount has ranked third in the country and the investment region has covered 149 countries and regions. However, the low cost advantage that promoting the development of export-oriented economy in Jiangsu has gradually weakened, the new competitive advantages are taking shape, such as key technology and name brand.Under the new economic norm, enterprises in Jiangsu province must make full use of their own industry competitive advantage, closely link with the global industry chain,and actively operate the “going out” strategy. The industry and location choice of foreign direct investment in Jiangsu is pivotal. It has related to the investment efficiency and return rate. So far there have been fewer studies about domestic foreign direct investment industry and location selection based on provincial level.In this paper, the foreign direct investment in Jiangsu Province has been taken as the research object. It applies statistical and empirical analysis methods to study on the scale and industry with location choice of the foreign direct investment in Jiangsu Province. It has certain theoretical and practical significance to guide the implementation of the “going out” strategy of enterprises in Jiangsu province. First of all, this paper describes the related important thoughts of the industry and location choice contained in the International mainstream investment theory from macro-perspectives and micro-perspectives, and analyses the frames of reference for Industry and location selection. Then it studies the status about the OFDI in Jiangsu and points out its problems. It performs Statistical test to determine the marginal industry in Jiangsu and does demonstration research based on principal componentregression and cluster analysis to analyze the factors of location selection in Jiangsu.At last this paper puts forward some suggestions on the base about the industry and location choice of OFDI in Jiangsu.