Study on type identification and policies of foreign investment attractiveness of provinces in China based on principal component analysis

Foreign investment has become an integral part of our country´s economic development. This paper does factor analysis on each index about foreign investment. The result shows that Shanghai, Tianjin and Beijing are ahead of the overall development level in China from the aspect of economic power. The infrastructures are relatively sound and can provide the necessary services for foreign investment. Yunnan, Hebei, Henan, etc have obvious advantages in investment cost. Overall, Shanghai, Tianjin, Beijing are leading the way in the comprehensive capacity of foreign investment attractiveness. Strengthen the government´s macroeconomic regulation, give full play to the role of market mechanisms, strengthen the leading of regional distribution and increase the self-innovation input, to enhance the comprehensive capacity in provincial areas.