Geographical concentration of foreign investment under the perspective of the causes of Analysis

Abstract: After 30 years of reform and opening up the development of foreign investment in China has formed a certain industry cluster, has become a bright spot in China's economic growth this paper, Zhejiang Pinghu optical and electrical industry, for example, in the geographical perspective of cost factors, market factors and policy factors, environmental factors, concentration factors of these five factors to analyze the causes of foreign investment concentration, and suggested that we should improve the facilities and improve the industrial supporting capacity, accelerate regional innovation system and other related recommendations.

Keywords: geographic concentration of foreign investment in the causes of optical and electrical machinery industries Pinghu


Since reform and opening, China has huge market potential and increasingly improved investment environment to attract a large number of foreign direct investment, as of the end of 2009, approved the establishment of China's total foreign-invested enterprises reached 683,000, the actual foreign direct investment amounted to 945.4 billion U.S. In 2009, industrial output value of enterprises with foreign investment, taxation, exports accounted for 28%, 22.7% and 55.9%, direct employment to absorb 45 million from the above data can be drawn, foreign investment has become China's economic growth of a bright spot for China's foreign trade, industrial upgrading and economic restructuring and many have played a positive role in promoting the rapid development of China's economy.

At the same time, after 30 years of development, foreign investment in China has formed a certain concentration effects, especially of high technology-intensive industries and capital-intensive equipment manufacturing, such as the IT industry in Dongguan, Taiwan-funded enterprises gather, Kunshan electronics industry in Taiwan-funded enterprises gather, Pinghu Japanese optical and electrical machinery industries, business gathering, etc. to promote foreign investment in gathering many factors, through a number of successful foreign investment in the development of concentration studied, the impact of foreign investment regional effects of main factors, the combined effect of economies of scale, industrial advantages, industries outside contact, space costs, etc., this will Zhejiang Pinghu optical and electrical industry, for example, to analyze the causes of foreign investment concentration.

A concentration profile Pinghu Foreign Investment

Pinghu City, Zhejiang Province, a county-level city, after the recent 10 years of development, not only became the county-level city in the province's largest Japanese investment base, and in the use of foreign development of optical and electrical industries to go in the forefront of the country from 1999 onwards, in the set up city's strategy, Pinghu City, in the rapid development of optical and electrical machinery industry, 2004, the city's total industrial output value of light electromechanical scale enterprises reached 6.741 billion yuan, an increase of 64%, accounting for 24.9% of total industrial output value by 2008, has 142 above-scale enterprises, the city's total number of industrial enterprises above designated size of 17.5%, industrial output value of 14.247 billion yuan, up 14.4%, the output value accounting for scale economies of the total 22.07%, electromechanical scale enterprise value of more than 10 years in just increased by 20 times, becoming the first pillar industry of Pinghu, and formed a micro-motor, precision machinery and equipment, optoelectronics, smart instrumentation and other industries as the representative of foreign investment clustering phenomenon in recent years, optical and electrical machinery industries Pinghu full combined effect of foreign investment, expanding industrial base, extend the industrial chain, foreign investment has clearly showing the accumulation of optical and electrical machinery industry status quo, and become high-tech optical and electrical machinery, Zhejiang Province, the only technology industrial base, the National Science and Technology approved the National Torch Program Pinghu optical and electrical machinery industry base.

Second, the concentration of foreign investment in Pinghu Analysis

Location theory school of thought, foreign investment tends to flow to those close to the raw materials, market capacity, labor-abundant and industrial agglomeration area. Foreign investment in space than any other form of production is more intensive, easy to make the investment to form a regional cluster. Some studies have shown , foreign investment incentives were put into production and market motivation, production services, motivation, cultural ties and emotional motivation, the use of incentives and motivation to reduce risk, competition, motivation and export motives. another study shows that market size, infrastructure and institutional environment (including education conditions, research conditions, the local financial development conditions and the degree of openness) is foreign direct investment location determinants, local finance to foreign investment location choice have a positive impact, while a large number of empirical studies have shown that concentration economy to foreign direct investment location choice have a significant impact can be seen, market factors, government policies, transaction costs, economic conditions, infrastructure conditions, the local financial impact of foreign investment are all important factors concentration, this will cost factors, market factors, policy factors, environmental factors, concentration of these five factors were analyzed.

(A well-developed transportation network

Generally believed that the production cost is a major factor in foreign investment in China, companies often choose the lowest cost of production location, the cost usually includes labor costs, transportation costs, etc. is located in Pinghu, the most active economic development in the Yangtze River Delta, Shanghai, Suzhou, Hangzhou, Ningbo and Shanghai are diamond-shaped diagonal cross points, from the four cities are only 1 hour drive, is a prime area, geographic location. Pinghu has the only northern Zhejiang Hai Zhajiasu waterway transport routes , with the Zhapu Port Huangpu River and Beijing-Hangzhou Grand Canal and other major river trade routes connected to provide a low-cost cargo convenience channel. so unique transportation conditions, saving time and transportation costs, attracting a large number of foreign-funded enterprises, promote the formation of the optical and electrical machinery industry as the core of Japanese investment cluster phenomenon.

(B) the huge market demand

The decision of a local foreign investment, they tend to attach great importance to market factors, because the size of the market determines the number and size of business, but also a prerequisite for industrial development and infrastructure. Pinghu City, located in China's most economically developed and the highest level of urbanization The Yangtze River Delta metropolitan area. 10% of the country in the region to create the country's population but 22.1% of GDP and 28.5% of total imports and exports, the world's top 500 enterprises have settled in more than 400. From this series of data can be seen, a large market capacity in the region, and with the rapid development of China Over the last decade, China's demand for high-tech products is increasing, which for optical and electrical industry is a good opportunity while Pinghu committed to export-oriented economy will lead to more overseas markets.

(C) The Government's policy direction

The quality of the market mechanism and the level of cost for the formation of foreign investment played a key role in gathering, and policy factors has great guide. Pinghu light electrical industry has been able in a short period of time, many Japanese companies to attract investment and rapid development, which the local government's policies are closely related. Pinghu government based on 'investment, the wealthy, security business,' preferential policies, improve infrastructure, provide the best services for foreign investors. Pinghu established 'a Bureau two centers 'that Merchants Service, Administrative Service Center and City economic development environment complaint center for all aspects of services provided by foreign businessmen, but also for foreign customs and immigration inspection and quarantine with Zhapu offices can directly handle customs clearance of goods Business Foreign Exchange Settlement Class range, has joined the global SWFT settlement system at the same time, for foreign investment projects located in Pinghu, the government will invest according to their size, content and technology industry, given the level of construction projects and standards for land transfer price plant lease price discounts. Pinghu for investing in Japanese companies are more of this phenomenon, Pinghu government listen to the suggestions to continuously improve the investment environment, for example, in personnel, in order to develop much-needed Japanese Japanese technical personnel and the corresponding , Japanese local governments and school together, in creating the appropriate cultural environment, in order to better adapt to the Pinghu Japanese environment, specifically the construction of the Japanese government a street style, Japanese-invested enterprises set up associations. All these policy factors for attracting foreign investment has played a significant concentration of the promotion effect.

Links to free download http://eng.hi138.com

(D excellent investment environment

Investment environment for foreign investment in the formation of concentration has a great impact on the general investment environment, the environment can be divided into hard and soft environment mainly refers to the hard environmental municipal infrastructure, mainly referring to the soft environment, resources and human resources development and intermediary service system (such as finance, accounting , training, and law. Pinghu municipal infrastructure facilities, rich human resources, the existing technical schools, vocational schools and other vocational education in secondary schools, for businesses to develop high-quality front-line staff. existing professional and technical personnel at all levels thousand names, each year from various colleges to introduce more than a thousand specialists Meanwhile, Pinghu is located in the Yangtze River Delta, from Shanghai, Suzhou, Hangzhou, Ningbo and other cities close, Fudan University, Shanghai Jiaotong University, Tongji University, Shanghai University of Finance, Zhejiang University, Suzhou University, Nanjing University and other famous universities Pinghu can provide a considerable number of high-quality personnel, high-tech optical and electrical industry to inject new vitality.

(Five concentration factors for development

Concentration factors on the concentration of foreign investment in China has great influence, mainly homologous to agglomeration and industrial clustering. Pinghu has a clear optical and electrical machinery industry cluster effect, most companies are Japanese-funded enterprises, and investments are focused on optical and electrical machinery industries. to Japan's Nidec group, for example, in April 1999 opened its first Japanese electric Pinghu produced Shibaura (Zhejiang Co., Ltd. has, since the combined effect, in a few years, 14 foreign companies have in this set up, with a total investment of about $ 500 million, contractual foreign investment of about $ 250 million; 14 companies in 2009 sales revenue 5.53 billion yuan because of Japan's electricity production group 'leading effect', so Pinghu Economic Development Zone has formed a micro-motor, semiconductor manufacturing equipment, precision testing equipment, laser scanners, pressure sensors, miniature cameras, digital cameras, optical fiber communication with passive devices, hydrodynamic bearing, optical based components based optical and electrical characteristics of industrial advantages, the formation of industry concentration, and has developed into a pillar industry development zone.

Third, the concentration of foreign investment to promote economic development strategies
Through the above analysis, the cost factors, market factors, policy factors, environmental factors, concentration factors of the formation of concentration of foreign investment location choice have different degrees of impact, the current backward areas could Zhejiang Pinghu, for example, from the following aspects to improve.

(One based on the regional industry characteristics, combined with the home advantage

According to theory of comparative advantage shows that foreign investment location choice tend to value the local area's natural conditions, resource endowments, capital and other advantages of local government should be based on the regional industry characteristics, combined with local natural advantages in attracting foreign investment flows into their own economic region in. On this basis, continue to improve infrastructure. not just the general infrastructure needed for the production of equipment and facilities, but should be combined with industry characteristics, according to the industry required to complete and perfect facilities to create a sound infrastructure, policies favorable investment environment.

(B and actively create a favorable investment environment

Creating a positive and favorable investment environment is its most important policy concessions. China's foreign investment preferential policies in recent years, foreign capital in the reduced space, the use of foreign capital attracted by a comprehensive introduction to the selective changes. Should keep abreast of local governments national policy, in the process of attracting foreign investment to take full account of local natural resources, ecological environment and special industries, selective absorption of the economic development of local industry and foreign investment, so as to achieve mutual development of a compatible model. a good investment environment is a prerequisite for foreign investment is protected.

(C to enhance the capability of supporting industries

With the strengthening of local government investment, geographical location, infrastructure, preferential policies to bring the many advantages will gradually weaken, while supporting the ability to bring the cost advantage of enterprises have become an important basis for choice of investment location. Major industrial supporting capacity integrity of the system, including industry, logistics and distribution system integrity and technical service capabilities, etc. So, where should improve the region's transport and logistics system, in space and time costs for foreign investment to provide a good vantage point, while , technical services and related industries must keep pace with industry professionals to meet their needs. industrial supporting capacity enhancement to give a lot of foreign investment to bring convenient place, but also to attract foreign investment and develop the local economy a priority.

(D to accelerate regional innovation system

In the use of foreign investment to boost the overall regional economic development, should speed up the construction of the regional innovation system, a change in the old model, the old system, the old policy, the use of innovative systems to enhance the competitiveness of local enterprises, local enterprises to make better integrated into the network of foreign investment so that foreign and local businesses collaborate to mutual benefit and win-win situation to drive regional economic development, therefore, the region should have an open, coordinated, integrated, principle of orderly reform and restraint system create a favorable environment for foreign investment and to achieve coordinated development of the region.

(E to strengthen the combined effect of attracting foreign

For the combined effect of foreign investment has a very significant impact, focusing on the industrial agglomeration of foreign investment approach. Local government in the market, based on investment and specialization, continue to strengthen awareness of industrial clustering, industry cluster approach to attract investment outside, to improve the relevance of foreign investment. And the industry cluster approach to prevent foreign capital investment has been cut and other areas Thus, according to the regional industry structure and industrial development, a clear direction of investment, related industries to determine the good, the combined effect of breaking through the expansion of industrial advantages, the formation of the concentration of investment, so as to drive regional economic development.

References:

[1] He hung waves, Li Guoping, Yang Jirui. Explore the causes of industrial agglomeration in China [J]. Nankai Economic Research, 2007 (6).

[2] Wei Houkai, Canfei, Wang. Motives of foreign direct investment in China and Location factors - foreign direct investment in the city of Qinhuangdao empirical research [J]. Economic Research, 2001 (2.

[3] Kim Sang Yu, Park Young-hee, the Chinese foreign direct investment location decision factors: city data [J]. Nankai Economic Research, 2006 (2.

[4] Yang Xianming. China's urban gathering of foreign direct investment attractiveness research [J]. Nankai Economic Research, 2004 (2.

[5] Zang Xin, Zou Mengnan Agriculture clustering pattern of foreign direct investment and the reasons for the comparison [J]. East China Economic Management, 2009,23 (9.

[6] Li, East Asian investment concentration and the relationship between regional economic development in Fujian of [J]. The northern trade, 2008 (5.

Links to free download http://eng.hi138.com

[DBNETLIB][ConnectionOpen (Connect()).]SQL Server 不存在或拒绝访问。

Related Research Papers on Foreign Investment

Investment Decisions Papers