Empirical Analyses on Factors Influencing French Direct Investment in China

Based on econometric models, this paper uses the related statistical data of 1990-2008 to analyze empirically factors influencing French direct investment in China by Eviews6.0 software. The result shows that the huge market potentialities and rapid growth of Chinese economy are the main driving force of French direct investment in China; The economic development level of France is an important factor of French direct investment in China ; The exchange rate between Chinese Yuan and euro has close relationship with the French investment in China. However, the impact of wage´s difference, interest rate´s difference, the previous accumulated stock of French direct investment in China, financial policies and other factors are not significant on French direct investment in China.