Research On The Re-selection Of Overseas Investment Locations Of Chinese Textile Enterprises

When it comes to the choice of location for overseas investment by textile companies,the first thing to consider is the low cost and relatively rich natural resource advantages of Southeast Asian countries.However,with the gradual deepening of the company’s overseas investment process,the trend of internationalization in different links of added value is obvious.In terms of location selection,we cannot simply dominate the advantages of labor and natural resources.In addition,the international market environment is constantly changing.The cost advantage of the host country is gradually being lost.Based on this article,in the analysis process,the research perspective is refined to different aspects of textile companies’ value-added overseas investment choices.Through the location re-selection of drivers,theoretical analysis and empirical measurement regression,the current background of domestic textile companies’ overseas investment locations is analyzed The key factors of reselection,and further put forward suggestions for location reselection according to the conclusion of the study.Firstly,the thesis obtains five principal component factors through principal component analysis,which comprehensively represent the economic development level of the host country,industry-related supporting links,foreign trade freedom,political environment,technological level,the amount of final products imported by the host country from the Chinese textile industry,energy use costs Business environment status.Afterwards,through the principal component Logit regression,the following conclusions were drawn: domestic textile companies tend to transfer high value-added links such as sales design to higher economic development levels,complete industrial related infrastructure,free foreign trade,stable political environment,and technology Countries with higher levels and greater demand for the final products of China’s textile industry,typical countries such as the United States,Japan,France,and the United Kingdom.Some host countries with low labor costs and relatively low natural resource rents are more attractive for low value-added investment,such as Thailand,Cambodia,India,Indonesia and other countries.Secondly,in Chapter 5,the 33 host countries surveyed are divided into two categories,and the dual logit selection model is used to analyze the impact of enterprise heterogeneity on investment location selection.Regression results show that domestic textile companies with higher productivity levels,higher profitability,higher R&D levels,and sufficient human capital tend to invest in Group II countries.Typical countries include Thailand,Vietnam,Cambodia,and Ethiopia.Companies with larger asset sizes tend to invest in Group I countries,such as the United States,South Korea,Japan,France,and Italy.Finally,a comprehensive comparative analysis finds that in the context of the gradual loss of the first-round host country’s location dividends for overseas investments that have undertaken low-value-added links,countries such as India,Indonesia,Myanmar,Nigeria,and Malaysia still have greater advantages among similar countries.South Korea,Japan,Canada,Italy,and the United Kingdom have obvious advantages in the selection of overseas investment locations for high value-added links.