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THE LOCATIONAL CHOICE OF DIRECT INVESTMENT FROM THE RELATIONAL PERSPECTIVE:PROCESS AND MECHANISM |
YU Guo-jun1, HE Can-fei2,3, ZHU Hua-you4 |
1. Party School of Zhejiang Provincial Committee of C. P. C, Hangzhou 311121, China;
2. College of Urban and Environmental Sciences, Peking University, Beijing 100871, China;
3. Peking University-Lincoln Institute Center for Urban Development and Land Policy, Beijing 100871, China;
4. College of Economics and Management, Zhejiang Normal University, Jinhua 321004, China |
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Abstract The paper analyses the process of location choices of direct investment (LCDI). Existing literature mainly focuses on the determinants of location choices, but rarely unfolds the dynamic process of location choices. There is no doubt that LCDI is a dynamic process, rather than an instant accomplishment. Based on the relational perspective, this paper constructs a dynamic process model of LCDI, including three pillar:that is, relational connection, location coupling and interactive game. This paper reveals that LCDI follows the complex and dynamic process of relational connection, location coupling and interactive game. First, the relational connection between the enterprises and the destination of investment is a prerequisite for the enterprises to invest, and the structural hole is conducive to the formation of the relationship between the enterprises and the destination of investment. Second, the coupling of enterprises and the location factors is a necessary process of LCDI. Third, the interactive game between enterprises and the local government is an important process of LCDI, and the two sides must reach a consensus.
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Received: 01 April 2021
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