Abstract

Since China performed the policy of reform and opening-up 30 years ago, foreign direct investment (FDI) has exerted important function in the quick development of economy, but the location factors of West China and East China are very different, and their attractions to FDI are not same. According to the location theory of FDI, in this article, taking the city of Chengdu as the example, we utilized the method of co-integration to empirically analyze the economic factors attracting FDI in West China in past 30 years since reform and opening-up. And the analysis results indicate that quicker economic growth, higher opening degree and investment in fixed assets are important economic factors to attract foreign investments for the city of Chengdu.

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