A Study on the Industry and Location of FDI in Shanghai

Abstract

As everybody knows, the foreign direct investment (FDI) is now the main motive force of world economy. As a developing country, China goes quickly and becomes the second largest country in the world in absorbing FDI. By contrast, there is only a little investment coming from China in the international capital market. Shanghai, the largest city in China, has the same situation as whole country. That does not match the functional position of Shanghai as an important international economic, financial and trade center. Shanghai must develop FDI to make it a center of Chinese multinational companies. There are some articles on the FDI of China and most of them are the macroscopic explanation at the national level. This paper pays more attention to Shanghai's FDI. The internal law of industrial structure and investment location of Shanghai's FDI are mainly analyzed in the paper. The location models of Shanghai's FDI are summed up also. Compared with South Africa the successful experience and existing problems of Shanghai's FDI are detailed introduced in detail. The characteristics of the paper is the combination of economy and geography.