Research On The Location Choice Of China's Textile Industry Foreign Direct Investment Under The New Normal

With the change of market environment and the cost of production element conditions at home and abroad,the development of Chinese textile industry has come to a new stage of adjusting,transformation and upgrading,textile industry economy growth has shifted from high speed to medium speed.Textile industry's production organization,consumption and investment demand,the comparative factor advantages and resources and environment constraints have also changed.In the meantime,rising costs of labor and land and other resources,accelerating upgrading of technology,huge fluctuations of raw material price have also become an unprecedented challenge for the traditional textile industry in our country.Therefore,Chinese textile enterprises began to go abroad for foreign direct investment.With the significantly increasing OFDI in our textile enterprises,the location choices will inevitably show the characteristics of diversification.Location choice is part of the foreign investment research in economics,it has a direct link with industrial advantages and ultimately affect the foreign direct investment.Based on this background,there is important theoretical and practical significance in the research of the location choice problem of Chinese textile industry's foreign direct investment.This paper chooses the Chinese textile industry as the research object,through carding,theoretical analyzing,empirical analyzing and case analyzing on the present situation,we study foreign direct investment location selection problem of Chinese textile industry.First of all,by collecting data and published research results both at home and abroad,we conclude and classify all relevant theories and researches on OFDI location selection.Secondly,in the research of foreign direct investment of Chinese textile industry,the latest research results of location choice theory,the heterogeneity of enterprise and foreign direct investment theory are considered.At the same time,the micro data of more than 1300 enterprises of Chinese textile industry with foreign direct investment during 2005-2015 are studied,the measurement methods are used to analyze on OFDI factors of location selection.In the end,three conclusions are drew: first,the higher the productivity of China's textile enterprises is,the larger the number of countries they'll invest directly will be;second,the smaller the host country's GDP is,the higher the production cost is,the lower the trade cost is,the greater the threshold of the host country's productivity is,the less OFDI textile enterprises the host country will accept;third,textile enterprise productivity,as well as the host country's GDP increase,the improvement of the political environment,the reduction of distance with China's culture and geography,the rising cost of trade and the cost reduction for enterprise to enter will significantly promote the foreign direct investment in China.At last,we further studied the location choice problem of Chinese textile industry foreign direct investment based on the case of investment in Vietnam of Tian Hong group,and come up with the corresponding countermeasures and suggestions from the angle of investment motivation.