On the Relationship between China's Investment Environment and Inflow of FDI

Based on the demand of FDI on investment environment from the factors of natural environment,economy,politics,and law,the author empirically analyzes the relationship between investment environment and FDI(foreign direct investment) in China,combining the real situation,and concludes that there are positive correlation between PGDP and FDI,HC and FDI,Infra and FDI,and Open and FDI,while there is negative correlation between Wage and FDI.Namely,a country will attract more FDI if it has higher GDP,and open and perfect investment environment.Therefore,less developed areas in FDI should improve investment environment and develop FDI atmosphere through improving infrastructure and expanding market to promote benign development of FDI.