Study On The Influencing Factors Of Foreign Direct Investment In Fujian Province

Since 1978,China has gradually deepened the reform and opened up degree background.Foreign direct investment has become a key driving force to promote China’s economic development,and at the same time,China’s capital has gone to the international market.The government advocates the development strategy of "going out",leading and supporting enterprises with industries to realize foreign investment and become an important participant in international competition.Fujian Province has been supported by the government to make OFDI on the stage,and thanks to the implementation of the "Belt and Road" initiative,it has ushered in better development opportunities,and has shown rapid growth in both stock and flow of OFDI.Therefore,it is of certain theoretical value and practical significance to study the factors influencing outward foreign direct investment in Fujian Province in today’s world economic integration development.Secondly,in the process of researching the paper,the authors used R&D investment data and the number of patents granted as indicators in evaluating the measurement of technological innovation capability,which makes the theoretical analysis framework more targeted than before;.Finally,the paper introduces the case of Fujian Yaohua Glass Industry Co.,Ltd and Fujian Baihong Poly Fiber Technology Industry Co.,Ltd,for empirical analysis with the help of relevant statistics on OFDI in Fujian Province,which makes the paper more realistic and operable.The theoretical model of OFDI influencing factors is constructed based on the analysis of relevant basic theories and the development history of OFDI,and firstly,the theoretical results of OFDI related theories and investigations are sorted out.Drawing on the VAR vector auto-regressive model,the time series data from2004-2019 is used as the research object,and the index systems of economic development level(GDP),research and development investment(RD),patent grant(P),foreign direct investment attraction(FDI),average wage level(AS),energy production(ENERGY),and export value(EXPORT)are introduced,with the help of The results show that the economic development level of Fujian Province(GDP),the number of patents granted in Fujian Province(P),the amount of foreign direct investment attracted in Fujian Province(FDI),the average wage level in Fujian Province(AS),the amount of energy production in Fujian Province(ENERGY),the amount of exports in Fujian Province(EXPORT),and the amount of foreign direct investment in Fujian Province(FDI)are all significant factors.,and the export amount of Fujian Province(EXPORT)have significant positive effects on the amount of foreign direct investment(OFDI)in Fujian Province.The paper also selects two representative enterprises,Fujian Yaohua Glass Industry Co.,Ltd and Fujian Baihong poly Fiber Technology Industry Co.,Ltd,and concludes through case empirical analysis that Fujian Yaohua Glass Industry Co.,Ltd OFDI is related to the increase of R&D investment,the number of patents granted,and the marriage with Saint-Gobain to break the technological barriers;Fujian Baihong poly Fiber Technology Industry Co.,Ltd OFDI in Vietnam is related to the economic development level and the average wage level in Fujian Province.Finally,based on the results of the theoretical model and empirical analysis,we conclude that the factors influencing outward investment in Fujian Province are:policy support,technological innovation,resource development,and market demand as the main motives of outward direct investment.And based on this,we propose the following research recommendations related to OFDI in Fujian Province: first,government policy support,including lowering the financing threshold,guiding industrial transformation,and implementing tax preferences;second,strengthening technological innovation,including improving R&D quality and establishing innovation bases;third,developing resource markets,including improving resource utilization and avoiding resource price risks;fourth,expanding market development,including actively introducing foreign capital and deeper market development.The authors hope that the relevant research and recommendations in the paper will provide some theoretical basis and reference suggestions that can be drawn from for the relevant government or enterprises in Fujian Province to carry out foreign direct investment.