A Demonstration on Influencing Factors of FDI Location Choice: Based on Co-Integration and Error Correction Model

Abstract

Based on the relevant data in the year of 1983 - 2008,the paper utilizes Co-integration Test and Error Correction Model to inspect the influencing factors on FDI Location Choice in China.With a such research,the paper comes to the conclusion,that is,there is a long co-integration relation among them,fixed asset investment,R,former accumulated foreign capital amount,loan balance of financial corporation and FDI have a positive correlation, while W,the city person and FDI have a negative correlation;This paper can provide policy reference.