The Empirical Study on the Relationship between host country conditions and the Investment patterns of China-foreign joint ventures in China

This paper extracts information of China-foreign joint ventures in China from china foreign economic Statistical Year Book (1984-1996) or Business China (1997-2005) and The China View (1997-2005). These three groups of information form a new database which includes data from 1984 to 2005 as the research sample. The research analyses the investment patterns of China-foreign joint ventures in China based on the information of the 8842 China-foreign joint ventures. This paper examines the investment patterns from the dimensions of investment value, geographical location, and industry sector and equity ownership. The study shows that the uneven spatial distribution, the sectored characteristics and the ownership structure of joint ventures are important factors affect the Investment patterns of China-foreign joint ventures in China. Location advantages, economic growth, industrial structures and reform process are major economic factors of Host Country Conditions influencing the investment patterns.