The Empirical Analysis of China’s Foreign Direct Investment Location Choice

On 25/12/2014, in Economics papers, by rain

The FDI strategy had had contribution to the development of China’s enterprises in the past 20 years, but since our-county became an official member of WTO,domestic market internationalization and international market nationalised has become an indisputable fact, especially in the trade-liberalization, financial globalization, production integration as the core content of Economic globalization trend, Chinese enterprises had been confronted with not only to carry out international competition in the domestic, but also need participate international competition directly in the global under the guidance of the national ODI strategy.There are much differences in the pattern of Economic development in the world under the geographic conditions, and thus in the research of foreign direct Investment location choice is one of the most critical problems. Developing countries, especially China’s foreign direct Investment had rapid development in the scale of present situation in recent years, but foreign direct Investment theoretical research in developing countries is far less than relatively maturity of the theoretical research in developed countries.In this paper, on the basis of the domestic and foreign scholars research results of foreign direct investment of developing countries.Under the in-depth analysis of China’s foreign direct investment location choice history, current situation and problems,and in allusion to the foreign direct investment of Chinese enterprises in recent years, and the status and location of the host country environment, drawing on the Basic framework of gravity model to construct a new gravity model, analysis the main fact impact of location choice in China conducts. And use for reference the experience of developed countries foreign direct investment and put forward some substantive policy recommendations.


Analysis of Mutual Relationship between FDI and Industrial Agglomeration in Liaoning Equipment Manufacturing Industry

On 23/09/2013, in Agriculture, by rain

As one leading industry of the industrialized countries,the equipment manufacturingindustry provide technology to other industries, the technical level directly affect otherindustry competitiveness.The equipment manufacturing industry product the level,quality and performance improvement, industrial comprehensive energy reduction, torealize the development mode, improving the national Economic benefits effectively role.The equipment manufacturing industry in China mainly distributed in the following areas:long Yangtze river and pearl river delta in shenyang, northeast China, as the center to xi’an are the center of the northwest in chongqing and as the center of the southwest. As inthe equipment manufacturing industry development of one of the earliest province ofliaoning province, has established a large-scale and complete range of the equipmentmanufacturing industry system.But for a variety of reasons, the equipment manufacturingindustry in liaoning province the development speed of the emerging of the equipmentmanufacturing industry gradually behind other provinces. In this situation, the equipmentmanufacturing industry in liaoning province from various aspects need to improve theircompetitiveness. And to speed up the Economic development in liaoning province is oneof the necessary choice of the effective use of foreign direct Investment (FDI)development high technology content and added value of the equipment manufacturingindustry and promote the equipment manufacturing industry gathering.In liaoning province as an example to analyze the equipment manufacturing industryagglomeration of FDI of influence is the main content of this article, expect for thedevelopment of manufacturing industry in liaoning province that conclusion.This paper mainly divided into six parts: the first part of this paper introduces thebackground and significance, research methods and the paper frame, then this paper theshortcomings of the analysis and innovation;The second part is reviewed andsummarized the theory, from foreign direct Investment, industrial concentration and it therelation between the two three aspects to the findings of previous research papersummarized; The third part is mainly analyzes the current situation of the development ofthe equipment manufacturing industry in liaoning province, with location entropy andindustrial concentration index as a measure of liaoning equipment manufacturing industry agglomeration of index;The fourth part is a theoretical analysis of the interactiverelationship between the foreign direct investment and the industrial concentration;Thefifth part is the core part of this paper, by setting up a model to do a empirical analysis ofthe interactive relationship between equipment manufacturing industry and foreign directinvestment; The last part is the use of countermeasures of Liaoning foreign capital.


Study on Location Choice of the Cross-Border Venture Capital in China

On 19/09/2013, in Finance, by rain

Generally, a given area of foreign business Investment mature risk of active,through many ways can greatly the development of local business risk Investment theimprovement of the environment, and improve the local venture investment riskmanagement efficiency. At present, China has become a global business venturecapital inflows are set to net the largest country. According to China’s risk investmentresearch, according to the survey, in China at present the foreign business ventureinvestment enterprises reached123home, by foreign institutions of the leadingbusiness venture investment in our country investment risk of total business for76%of the total. At present in zhejiang province is about nearly40risk investmentcompany, of multinational business venture investment company that a, the actualinvestment projects also very little, and multinational business risk investment quitecentralized Beijing, Shanghai, guangdong, area compared, zhejiang province in thedust. In zhejiang province, it venture investment market risk are not fully open, and nobenefit. So now the problem to be solved in zhejiang province is effective investmentpromotion strategy formulated, multinational venture investment risk will “eye”transferred to zhejiang province. But there is still a lack of some systematic,authoritative research theory, and multinational business risk investment developmentthan speed, theoretical study is slower, and most of the research focuses of analysis onmultinational business is investment risk factors and future international businessinvestment risk development trend.This paper first using strategic resource integration theory to the multinationalbusiness risk investment strategic motivation, resource integration and investmentlocation choice for detailed introduction and expatiated; Secondly, with China’seconomic development present situation, set up investment in China location selectiondecision model, making proper evaluation coefficient, the location selection decision process quantitatively; Then, all provinces and cities in China are in attract themultinational business risk investment to analysis the advantages and disadvantages,and lists the first into China in the international business investment risk investmentcompany IDG company, analyzes its strategic motivation, into the way and theinvestment location choice. In the final analysis in zhejiang province attract themultinational business risk investment advantages and defects, and then through thedrain in the investment promotion has excellent results of the experience of theprovinces and cities, and find out how multinational business in zhejiang provincefrom risk investment company favor the strategy of the way, and promote theeconomic development of the province.In this paper has the theory view strategic resources integration theory, with thetheoretical analysis, the study of transnational venture investment risk, and based onthis, added the international business on international investment risk of theshortcomings of the theory. On the other hand, according to strategic resourceintegration theory, an investment in China Enterprise’s location selection decisionmodel, is fully understand the multinational business venture investment in ourcountry choose how location provides the theory support. This paper argues that theproblems of the zhejiang province at present is to the adjustment of economicstructure and improve the investment system, so that the multinational creates throwsthe Enterprise to invest. However, the current whether domestic or foreignmultinational wind cast for the study of the theory of the very few, and the speed farmore entrepreneurial venture investment transnational the speed of development. Forthe study of the theory of the multinational business risk investment only for a briefoverview of the research and development trend. So, want to clear understanding ofmultinational business investment in the development of our country risk forinvestment purposes and conditions, the circumstance such as location choice, it isnecessary to establish scientific and reasonable international investment mechanism.


The Research on Location Choice of Chinese Enterprises’ FDI

On 08/09/2013, in Management, by rain

Since the reform and opening up, under the guidance of national policy, Chineseenterprises began to invest overseas, after effort of several decades, Chinese enterprisesforeign direct Investment (FDI) have obtained the considerable development, they havebeen around the world on five continents over180countries and regions, almostcovering every industry. In1990s, increasingly clear trend of world economyglobalization, international trade and foreign Investment growth is rapid, especiallyforeign direct investment and its carrier–rapid development of multinationalcompanies, has become the important impetus to the growth of global economy.Buteverything has two sides decided that the Economic globalization can not only promotethe development of the global economy, but also can bring the fatal blow, the2008financial crisis proved this truth. After the financial crisis, the pace of global economicrecovery have become slower obviously, the overall Economic downward risk increases,the developed countries of Europe and America economic recovery is obviouslyinsufficient, economic growth rate is far below the emerging economies, in this context,discussing our country’s foreign direct investment has urgent and practical significance.From the domestic point of view, our country’s Enterprise foreign direct investment dueto the late start and other reasons, and there are also some problems about wrongchoices of location, in such a situation, studying Chinese Enterprise foreign directinvestment location choice in question for Chinese enterprises in the overseas businessand development has the very vital significance.In the first half, it is mainly related to foreign direct investment theory content aswell as some review at home and abroad as well as on Chinese foreign direct investmentpresent situation analysis.The second part is the summary and draw lessons fromforeign experience and lessons of foreign direct investment and case, looking for theexisting problems of foreign direct investment in China and the reasons for theproblems, and then through the case study and the theory of the classic Chineseenterprises and government put forward a constructive suggestion. The innovation ofthis paper includes the following aspects, the first basing on the latest, most direct, themost authentic data to make a contribution to Chinese enterprises choosing Africa to dodirect investment; the second, through the study of the national character to studyforeign direct investment location choice, the character of research and investment relationship.


The Research on the Location Choice of Investment of Container Terminal Operators in China Port

On 02/09/2013, in Transportation, by rain

Along with Economic globalization and the deepening international division of labor, container ports emerged from a simple shipping transit role, is increasingly extended to value-added services and international transportation integrated logistics center field. Port industry revenue is stabler relative to the shipping industry, smooth, unlike the shipping cycle fluctuations. Container port market has a stable Investment income from the international experience, internal rate of return is generally10%or more in container ports. As the higher Investment yield of container port industry, container port industry became an important target for international Investment. As a container port’s main investors, terminal operators efforts to build container port business networks. Foreign investment in the port terminal operators, not only for self-navigation of ships and ports of call to bring more convenience, while shipping sector investment diversification through Terminal operational risks.Since reform and opening, China’s sustained Economic growth and promote the world economy’s center of gravity to the pattern of trade with China as the core of the East Asian regions, while prompting China’s container port industry has been rapid development, China’s port incoming transport networks in the world the status and role rising. Terminal operators to invest heavily in Chinese container port in China’s coastal ports build business networks, but the port terminal operator investment location choice there is a big difference, mainly in the Yangtze River Delta, Pearl River Delta, the Bohai Sea in the part of the port, and some Port not involved, the port’s long-term development needs of capital investment, foreign investment is the main source of funding of port development, so how to attract foreign investment has become a port of the future to consider the further development of important issues.In this paper, container port terminal operator’s investment location decisions as the goal, the use of FDI location choice theory, through the terminal operator’s choice behavior studies using Theil index difference between port cluster analysis. The container port terminal operators investment characteristics and logit probability model combined with a logit utility function container port terminal operators on the choice of investment behavior, affect investment location choice of the degree of influence of each factor quantitative analysis, concluded related factors on the terminal operator investment location choice of coefficients derived affecting terminal operators Investment for the decisive factor, so as to attract foreign investment in China port to provide a theoretical basis and practical guidance.


Research on Choosing Investment Location Abroad of Mining Enterprises in China

On 30/08/2013, in Management, by rain

In this paper, we have analysis the mining companies in China’s foreign investmentfrom the perspective of the location choice, First we summarizes the mineral enterprises inChina foreign Investment projects, and the foreign Investment projects in variousenterprises throughout all continents of the world, The number of investment projects isalso showing a certain scale. Then according to the number of investment projects, foreigninvestment in the past stage is divided into the initial stage and the initial stages ofdevelopment and distribution status analysis of the location of foreign investment inChina’s mining companies from various continents and national levels, Drawn, mineralenterprises in China foreign investment focused on similar or slightly lower than the levelof Economic development of the country, close to the geographical distance orresource-rich countries, Secondly, I have use the factor analysis of the investmentenvironment of the sample countries, and ranked. Draw, Spain, Canada, Russia, Brazil,Australia is the best investment in the host country, Argentina, Mexico, India, South Africa,the five countries with respect to more than a few countries are slightly inferior, butintegrated Environmental is better, investment environment is well, several countries areKazakhstan, Thailand, Vietnam, Laos and other Asian countries. The investmentenvironment is relatively poor, but due to the geographic advantage and Social customs, wealso can grasp the investment opportunities and timely investment. Finally, according tothe existing problems, I have give some recommendations accordingly from thegovernment level and the Enterprise level.


MNCs Intra-firm Trade and International Competitive Advantage

On 02/08/2012, in Management, by rain

【Abstract】 Over one third of world trade consists of intra-firm trade, and about 80% payment of the technology-transferring fee is completed by intra-firm. The large-scale intra-firm trade of MNCs, in its special way, has great influence over the host countries, the investing countries, even the global economy. MNCsintra-firm trade is the reasonable result of pursuing international competitive advantage. Intra-firm trade is the effective measure to enhance the MNCs’ international competitive advantage. The text contains five chapters:The first chapter is about the status and theories of intra-firm trade. It focuses on introducing the current status and several theories of intra-firm trade.Chapter two is focuses its intention on interpreting how intra-firm trade takes place by analyzing value chains of enterprises and how to bring intra-firm trade when MNCs pursue international competitive advantage. By analyzing the Enterprise value chains, we can say that the division, transferring, and conformity of MNCs’ value chains create intra-firm trade in pursuing international competitive advantage. In order to pursue international competitive advantage, it is the Basic reason of the creation intra-firm trade that MNCs recompose their value chains.Chapter three is about intra-firm trade in MNCs’ technology. The status of intra-firm technology trade is introduced. The author makes a general analysis of the relationship between intra-firm technology transfer and international competitive advantage. All the characteristics of technology come to a tendency that technology is transferred within MNCs. The technique intra-firm transfer can quickly create the inner market, discriminative price system in technology transfer and trading in goods, and can lower the transaction cost, and can strengthen the technology monopoly position in the world, and can create or maintain the difference advantage. All of these can enhance the MNCs’ international competitive advantage.Chapter four focuses on location choice. The author has analyzed that intra-firm trade is the effective measure to transfer host countries’ comparative advantage to MNCs’international competitive advantage. The precondition of intra-firm trade in MNCs is the direct Investment to some host country. It is the Basic motive of FDI to make use of the comparative advantage in host country adequately. The intra-firm trade is the Basic means to expand the international competitive advantage by combining the host country comparative advantage with the MNCs’ advantage.Chapter five is about the suggestions on how to attract MNCs’ FDI and how to promote foreign direct investors in our country.


The Theory of Cross-border M&A Location Choice and Its Exertion in China

On 02/07/2012, in Management, by rain

【Abstract】 No matter by what kind of standard, the geographic distribution of Cross-border M&A (Merger and Acquisition) is overwhelmingly uneven. The North America, the Europe and the Australia have attracted over 80 percent of Cross-border M&A in the world, and the developing countries and regions are still acting as supporting role. In China, Cross-border M&A investments are mainly made in the coastal developed area. Why does the uneven distribution occur? What factors decide the distribution of Cross-border M&A? In order to attract more Cross-border M&A Investment, how does China improve its Investment climate? These questions addressed above are the main topics of this dissertation.Based on the theory of Cross-border M&A, FDI (foreign direct Investment), and the theory of location, this paper, constructing a theory frame and an evaluating system, analyzes the location choice of Cross-border M&A and further advances the location theory of Cross-border M&A. The determinants addressed in this paper are divided into three categories. One is cost determinants, including labor cost, transport cost and information cost. Another one is market determinants, including market size, the mature of the market and the development level of the agencies. The last one is policy determinants that include the attitude and policies to Cross-border M&A, the effectiveness and efficiency of legal systems.Aiming at the essential characteristics of Cross-border M&A, this paper chooses seven evaluating indicators to analyze the location of Cross-border M&A in China. The results show that Cross-border M&A tends to inflow into the coastal developed cities and the regional central cities. After entering the WTO, the investment motivation of Multinational Corporation (MNC) in China is to obtain strategic asset and long-term benefit. Policy determinants and market determinants become the most important decisive factors.Under the background of the Economic globalization, China has become a merging market with the highest potential in the world, and Cross-border M&A is becoming the main way of attracting foreign investment progressively. In order to widen the channel of attracting foreign investment, attract Cross-border M&A investment energetically, and promote the competitiveness, every region of China must change the idea, cognize the advantages and disadvantages of Cross-border M&A, define the guidelines, and strengthen infrastructure construction, accelerate the urbanization process of the area. Aiming at the determinates of the location choice of Cross-border M&A, every region must set up all-around agency servicesystem, perfect the interrelated law, and construct a better environment for Cross-border M&A investment.


Location Choice Analysis on FDI of Chinese Enterprises

On 23/06/2012, in Management, by rain

【Abstract】 With obviously collocating of productivity factor in the world, the global steps of economy have been making much progress. Our government and enterprises begin to focus on the strategic issue of FDI for their corporations. Therefore, the research on the location choice has much meaning of theory and realism.The research on the location choice in this paper has been carried mainly by country analysis. Based on the theory analysis, the paper summarizes the country evolvement rule and the trend in the future by now. In succession, in order to find the deeply country evolvement rule, the author mainly analyses the factors which effect location choice of enterprises’ FDI. Under the Investment’s model including the sources Investment, the host Investment and investor, the analysis begins from the academic and empirical angles. After this, we abstract the variables based on the observational and metrical character, and establish the “gravity model”, empirically analyzing the factor which effect location choice for enterprises’ FDI in step from macroscopical angle. Then related to our current condition, we point our some suggestion. In addition, considering


Research on Location Choice of Transnational Corporations Manufacturing Investment in China

On 16/06/2012, in Management, by rain

【Abstract】 With the development of economy globalization, the Investment on manufacturing of transnational corporation (TNCS) in China is becoming more and more active, so there are many theories on this. But because there are many differences in. sources of TNCS, motive of corporations, Management strategies and various districts in China, the location choices on manufacturing industry of TNCS in China are made a complicate and dynamic decision process. In this condition, there are some defects in the traditional theory research such as, lacking of systematic research framework, static more than dynamic, synthetic more than comparative, obsolete more than creative. Therefore, on the basis of these defects, it should be improved in the theories on the location choice of Investment on manufacturing industry of TNCS in China.In this paper, we aim to study the location choice of investment on manufacturing industry of TNCS in China. Detailed information has been acquired by the author using foreign direct investment theory, transnational business, regional economy, and economical geography. And the method used in our study is known as link theory with practice, link quality with quantity, comparative analysis and systematic analysis. The procedure can be briefly described as follows. In theory study, on the basis of FDI theory and location theory, special mention is given here to the location decision factors in location choices in FDI of TNCS. In practice study, according to the regional distribution and changes of investment on the manufacturing industry of TNCS in China, the author is now initiating some experimental investigation in investment history, strategy changes and investment behavior characters, and based on this, it comes to the conclusion that there are many factors such as cost, market, agglomeration economy institution and Social culture. In addition, the author gives a case study of Motorola in China to prove the conclusion in detail.In summing up, it may be stated that on the basis of our study, we can give some suggestion on the FDI utilization and instruction on how to invest in China to TNCS.