本文是一篇金融管理论文，中国是自1978年“开放与改革”政策宣布以来发生显著变化的一个独特的例子，改革之初，外国公司在中国投资，但后来，中国政府强调了外国直接投资的重要性。近40年来，中国市场向国际投资开放，吸引外商直接投资取得了显著成效，政府通过设立经济特区，促进中外合资，为外商直接投资创造了有利条件。从1978年的接近0美元，到2018年，中国的外商直接投资达到约1350亿美元，2017年有539345家外国企业在中国注册（中国国家统计局）。
CHAPTER 1 Introduction
1.1 Research Background and Motivation
China is a unique example with remarkable changes since the introduction ofthe "Opening-up and Reform" policy in 1978. For almost 40 years, Chinese marketsare opened to international investments and obtained outstanding results in pullingforeign direct investment (FDI). From almost $0 in 1978, China reached ~$135 billionof FDI in 2018 with 539,345 foreign enterprises registered in China in 2017 (NationalBureau of Statistics of China). Different firms from all over the world, either solely-owned or as joint ventures with Chinese firms, have built a widespread presence inChina. Also, the Chinese “One Belt and One Road Initiative” (OBOR), is adevelopment strategy proposed by the Chinese Government. As a part of the “New SilkRoad initiative” it focuses on connectivity (like roads, ports, railways and other links)and cooperation between Asia, Europe, and Indo-Pacific countries.
Moreover, not only through national statistics but from daily life Chinese peoplecould with ease experience the changes with such companies as MacDonald’s, KFC,Coca-Cola, Apple, Zara, H&M, Disneyland, Walmart, Carrefour and a countlessnumber of other companies. From what it could be concluded that Chinese people’s traditional lifestyle has changed with an increasing amount of FDI inflows. Suchmultinational enterprises’ (MNE’s) are playinga crucial part in promoting and formingthe possible pattern of economic development (Dunning, 2003), and all their choicesusually depend on their FDI decisions.
........................
1.2 Research Aims and Objectives .
This thesis aims to empirically investigate the determinants of FDI distributionin China and assess the effect of FDI on Chinese local investment. This aim will bereached by the following objectives.
1. To identify regional features of China's investment climate (study of thecurrent state of China's investment climate, highlight the main stages of investmentpolicy development, study the legal basis of China's investment policy, study the roleof Chinese "Huaqiao" as foreign investors in China, characterise China's regions in thecontext of their attractiveness to foreign investors based on regional differences andfeatures of Chinese provinces);
2. To investigate what particular factors significantly affect FDI locationchoice decisions in China using regional-level data from 1990 to 2018;
3. To examine the factors that determine FDI sector investment choice in theChinese market using sectoral data from 1991 to 2018. All the sectors were dividedinto primary, secondary and tertiary.
.................
CHAPTER 2 Theoretical Framework on FDI in China
2.1 China's Investment Climate: Nature and Main Characteristics
2.1.1 Theoretical Bases of Research of Investment Processes
At the beginning of the 21st century, the most characteristic quality in the worldeconomy is the high degree of interconnection and interdependence of nationaleconomies among themselves and with the world community as a whole. Investment,as a form of international economic activity, allows us to solve a number of essentialtasks. To conduct a full-fledged study of investment processes, a full understanding ofthe theoretical foundations and conceptual apparatus is necessary.
The term "investment" is defined by a large number of properties andcharacteristics. So, from a legal point of view, investments are primarily an object ofproperty, they are also an object of economic management, market relations. They area source of market for investors. In the most general form, investments arecontributions of capital in all its forms in various business objects by national or foreigninvestors to obtain a profit or other economic or foreign economic effect, theachievement of which is associ
