Comparative Analysis on the Effective Factors of Foreign Direct Investment in Port of East and South China: Based on Panel Data

The rapid development of foreign direct investment (FDI) effectively compensates for the developing shortage gap of China´s ports in the area of capital formation, technological progress, international competitiveness, management and mechanisms, and human resource, FDI has become the most important force driving the rapid growth of China´s ports. FDI in China´s port is highly concentrated in the eastern coastal areas, especially in East and South China. Based on the panel data of 1991-2008, this paper focused on the research of effective factors of foreign direct investment in the ports of aforementioned two areas by using quantitative analysis method. This paper certified that there were similar and different factors made effect on the attracting FDI in the said areas´ ports, each of them had their own advantages. The comparative advantages of East China attracting FDI in port are mainly reflected on the ability to radiate the domestic market, the degree of openness, the level of economic development and labor quality, while the comparative advantages of South China attracting FDI in port is mainly reflected on the labor cost.