Study On The Distribution Of FDI Location And Its Influencing Factors In China

Location selection is the first issue that enterprises should consider in outward foreign direct investment..Because the location selection is directly related to the success or failure of foreign direct investment.Therefore,it has theoretical and practical significance to study the location choice of foreign direct investment of Chinese enterprises.This paper reviews the theories related to the location selection of foreign direct investment and the literature on this basis,including internalization theory,international production compromise theory,marginal industrial transfer theory and investment inductive factor combination theory.It is concluded that the host country factors related to the location selection of FDI include factors of production,distance,system and economic environment.According to the relevant data,this paper studies the investment situation and location distribution of China's foreign direct investment(OFDI).China's foreign direct investment(OFDI)is developing rapidly,and its position in the world is also rising in terms of flow and stock,and it is now in the forefront of the world.The location distribution of foreign direct investment(OFDI)is becoming more and more extensive.Asia is a key investment region,and developed economies have become investment hotspotsregion,but both in the country and industry are relatively concentrated.China's foreign direct investment(OFDI)is too concentrated in developing countries,the proportion of Chinese investment in transition is too high,and it can not form scale linkage effect and so on.This paper choose China's outward direct investment(FDI)flows as dependent variable,taking the production factors,demand conditions,correlation and support industries and enterprises' competition as the kernel variables,which are included in the theory of national competitive advantage.Taking the system,gross domestic product(GDP)and the level of economic extroversion of host countryas controlled variable,and using the panel data of 112 countries from 2006 to 2016 as a sample,and using stata13 software to carry out regression analysis,we drawed the following conclusions: The difference of factors of production is an important factor in the choice of host country for China's foreign direct investment,and the differences in factors of production,such as capital,labor and technology,have a significant impact on the location choice of China's foreign direct investment.In terms of demand conditions,the smaller the host country's domestic demand market,the more Chinese enterprises invest in it.In terms of related and supporting industries,the low quality of suppliers is significantly negative,indicating that China's outward investment is more inclined to countries with complete business environment.In terms of enterprise competition,the efficiency of the commodity market is significantly positive,indicating that the better the competitive environment of the commercial market of the host country,the stronger the attraction to China's direct investment.In view of the above conclusions,this paper puts forward suggestions on the location choice of China's foreign direct investment from four elements of national competitive advantage theory and five aspects of government.First of all,we should choose the location according to the difference between the factors of production between China and the host country.Second,China's foreign direct investment enterprises should not only pay attention to the needs of the current host country market,but also comply with and develop the potential needs of the host country market,adopt different strategies according to different types of countries.Thirdly,China's overseas investment enterprises can "go overseas in group" according to the upstream and downstream relationships of the industrial chain,thus forming the competitive advantage of Chinese overseas enterprises in the industrial chain.Fourthly,to improve the core competitiveness of foreign investment enterprises,the government should also create a level playing field to foster the competitiveness of enterprises in the world market.Finally,the government should provide information services for enterprises,restrict investment in "tax havens",and guide different enterprises to diversify their FDI regions and industries.