Acknowledgements

Abstract
In 2003, China's absorption of foreign direct investment amounted to $ 53.505 billion, and becomes the country with the absorption of most foreign direct investment. Foreign direct investment in Hunan Province amounted to $101.835 million, accounting for 1.92%, ranking 12th in China, and in the inland provinces, it is less than Jiangxi and Hubei.
This study builds http://www.400190.com/ygsslwdx/ on existing research experience, selects the location theory, theory of international direct investment and industrial organization theory as the basic theory for the research of location of foreign direct investment, and tries to inter-city and inter-provincial of these two spatial scales to analyze the location of foreign direct investment in Hunan Province by using the regression models and the method of gray correlation.

The results showed that the roles of the same location factors at different spatial scales on foreign direct investment are not entirely consistent. In terms of cities and states in Hunan Province, the economies of scale, market capacity, cumulative foreign direct investment, financing capacity, level of industrialization, globalization level and good geographical location have significant role in promoting growth for foreign direct investment; the technological development capacity, degree of development of information technology, labor costs, infrastructure conditions and level of urbanization are not obvious in promoting foreign direct investment growth. The province's investment environment can be divided into four levels: the first level is Changsha, Zhuzhou, Xiangtan, Yueyang and Chenzhou can be classified into the second level, Changde, Hengyang and Loudi are the third level, Yiyang, Yongzhou, Huaihua, Zhangjiajie and Shaoyang cre classified into the fourth level.

From the comparison of Hunan, Hubei and Jiangxi provinces, the financing capacity, economies of scale, market size, labor costs and geographical location are strong location factors, the level of urbanization, infrastructure conditions, industrial development, technological development, globalization and information level are neutral location factors, the cumulative foreign direct investment size is the weak location factor, in which the first two largely determine the location choice of foreign direct investment in the inland areas. The impact of Hubei's economies of scale, level of industrialization, infrastructure conditions on foreign direct investment is higher than in Hunan, the impact of the http://www.400190.com/ygsslwdx/ financing capacity and infrastructure conditions in Jiangxi on foreign direct investment is slightly higher than in Hunan, making the two provinces in the absorption of foreign direct investment are higher than Hunan, and Hunan only in the market capacity and technological development has certain comparative advantages. Investment environment in Hunan is better than Hubei, and the improvement of investment environment in Hubei is slow, but faster in Jiangxi. In the new century, Jiangxi has been a leader in three provinces.#p#分頁標題#e#

Table of Contents
Acknowledgements 2
Abstract 2
Chapter 1 Introduction 6
1.1 Research background & significance 6
1.2 Research aim & questions 7
1.3 Framework of dissertation 8
Chapter 2 Literature Review 9
2.1 Basic concepts of foreign direct investment location 9
2.2 Theoretical basis of foreign direct investment location 10
2.2.1 Location theory 10
2.2.2 Theory of international direct investment 12
2.2.3 Theory of industrial organization 16
2.3 Relationship between foreign direct investment location and investment environment 18
Chapter 3 Research Design 20
3.1 Choice of location factors 20
3.2 Research methods and data 24
3.2.1 Establishment of location analysis model 24
3.2.2 Investment environment index calculation and structural analysis 25
Chapter 4 Results and Analysis 26
4.1 Measurement test and analysis of empirical results 26
4.2 Measurement and analysis of investment environment 31
4.2.1 Measurement of investment environment 31
4.2.2 Analysis of the internal structure of the investment environment 34
4.3 Comparison analysis of three provinces 35
4.3.1 Development trend analysis 35
4.3.2 Choice of research methods 37
4.3.3 Analysis of location factors 39
Chapter 5 Conclusion and Recommendations 43
5.1 Main conclusions 43
5.2 Recommendations 44
References 46

Chapter 2 Literature Review

2.1 Basic concepts of foreign direct investment location
First, we give the basic concept of foreign direct investment. Foreign direct investment refers to the economic activity by the foreign enterprises to invest capital, technology, production equipment and plant, etc. in other country to obtain direct profits for the purpose (Kojima, 1978). This economic activity is the product of development and progress of productive forces, and is the result by the geographical division of labor that deepens the market economy and has become increasingly active in regional and international economic and human economic activities and organizational forms (Hsiao and Gastanaga, 2001). Foreign investors tend to find in one of the most favorable overseas production sites, and bring them into the global industrial chain of enterprise system.

Foreign direct investment location refers to the site for foreign direct investment enterprises in a particular area (non-investment enterprises home country) to the geographical space as the background, which is located by the relevant social, economic, social and economic activities (Friedman, Gerlowski and Silberman, 1992). This place is rich in content. Due to the non-uniformity of resource spatial distribution, the regional division of labor and socio-economic differences in space, it makes all places to be with different costs of space, markets, resources, technology, systems and other geographical conditions and different combinations of these conditions, and has different location advantages, allowing foreign direct investment can be carried out in some location. So in this sense, the foreign direct investment location objectively reflects in the geographical space constraints, foreign direct investment and related economic and social activities play a role in the opportunity, space and extent of the process, is a geo-spatial location identification socio-economic space, and given by the joint action of both foreign direct investment location factors, location selection and location decision-making differences.#p#分頁標題#e#

Thus, foreign direct investment location factors, location behavior, location decisions are more complex than the general location, it depends not only on business of their own financial strength and business strategy, and relates to the international market, investment target region's natural conditions, economic conditions, political and social conditions and other factors.

2.2 Theoretical basis of foreign direct investment location
Because foreign direct investment location studies are across multiple disciplines, and the study of history is not long, so far, a unified theory of foreign direct investment location is still under discussion. Academic study of foreign direct investment location is still based on the theory of other disciplines. There are more respected location theory, the theory of international direct investment and industrial organization theory.

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