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Analysis on Influencing Factors of FDI Location Choice in Jiangsu Province

Shi Wei-xing

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Abstract

This paper reviews the latest studies on FDI location choice in both domestic and foreign literatures,and analyzes the general status of FDI in Jiangsu and its current distribution in locations and industries.7 variables are introduced.Furthermore,based on the cross-section data of the 13 cities of Jiangsu in 2008,this paper constructs a multiple linear regression model,and conducts the empirical analysis of factors influencing FDI location choice.The study has shown that specific agglomeration,labor force,and policy are the predominate factors of FDI location choice in Jiangsu.In the end,this paper proposes suggestions corresponding to predominant factors aforesaid.

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What this paper is about

This paper reviews the latest studies on FDI location choice in both domestic and foreign literatures,and analyzes the general status of FDI in Jiangsu and its current distribution in locations and industries.7 variables are introduced.Furthermore,based on the cross-section data of the 13 cities of Jiangsu in 2008,this paper constructs a multiple linear regression model,and conducts the empirical analysis of factors influencing FDI location choice.The study has shown that specific agglomeration,labor force,and policy are the predominate factors of FDI location choice in Jiangsu.In the end,this paper proposes suggestions corresponding to predominant factors aforesaid.

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Available abstract

This paper reviews the latest studies on FDI location choice in both domestic and foreign literatures,and analyzes the general status of FDI in Jiangsu and its current distribution in locations and industries.7 variables are introduced.Furthermore,based on the cross-section data of the 13 cities of Jiangsu in 2008,this paper constructs a multiple linear regression model,and conducts the empirical analysis of factors influencing FDI location choice.The study has shown that specific agglomeration,labor force,and policy are the predominate factors of FDI location choice in Jiangsu.In the end,this paper proposes suggestions corresponding to predominant factors aforesaid.

Key concepts: Foreign direct investment, Economies of agglomeration, Distribution (mathematics), Economic geography, Regression analysis, Empirical research, Business, Econometrics

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