A STATISTICAL ANALYSIS OF THE DETERMINANTS OF THE LOCATION OF JAPANESE FDI IN CHINA

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  • 日本の対中FDI立地要因に関する統計的分析
  • ニホン ノ タイチュウ FDI リッチ ヨウイン ニ カンスル トウケイテキ ブンセキ

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FDI (Foreign Direct Investment) has been one of the most important driving forces to a country or to a region. FDI not only provides money, but also has brought business and technical know-how, and has opened overseas sales channels in China. Therefore continued FDI to China and its regions will bring higher economic growth. China has performed very well in attracting FDI at the national level; however, there has been a remarkably unbalanced distribution at the regional level. Japan, as the 3rd largest direct investment country in China, has shown more remarkable unbalanced distribution at the regional level than at the whole. It has become very important to clarify what the determinants of the location of FDI in China for policy-making are. In this paper, first of all we will discuss the relationship between the transitions of Chinese Government policy in foreign investment and the changes of location of FDI in China. After that, we will focus on only determinants (excluding the policies) of the location of Japanese FDI by examining 4,403 cases of Japanese investment from the statistical point of view. Specifically, this study made a multiple regression model by using the number of Japanese investments in 28 regions in China in 1996-2002 as dependent variables and 10 independent variables in the same regions in 1995-2001. From this study we extrapolated the following factors which can affect Japanese FDI location as follows: (1) the number of Japanese investments in the region in the past 2 years as the most important positive factor overall, being much larger β than the others; (2) the number of tertiary students in the region as the second positive factor; (3) the number of students in special schools in the region as a negative factor (although we cannot say this factor indicates a true relation of cause and effect, since it has been influenced by other factors); and, (4) road density in the region as also a positive factor.

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