| Since the central government put forward the strategic development of "going out", the governments at all levels began to encourage and support the outward foreign direct investment made by all kinds of ownership enterprises which have its own comparative advantages. As the approval standards and procedures began to reduce and simplify, our country progressively transformed from the big country which attracts investments to the big one which makes investments since then. Therefore, an ever-growing number of scholars at home and abroad regard this phenomenon as a hot spot to make research in it, so a large number of desirable achievements and conclusions have been generated. With the unceasing increase of our outward foreign direct investment, we began to find the investment’s characteristics that it has accumulated to the Service industry from the official data. However, the existing researches have not made a specific answer to the phenomenon, and there are only a few of papers related to the relationship between the development of host country and the Chinese outward foreign direct investment.This study, therefore, will focus on the relationship between the two factors and the pattern how the development of host country affects the Chinese outward foreign direct investment based on the existing research literature at home and abroad about foreign direct investment. In addition, this study will divide the development of host country into two parts that are the added value of Service industry and the trade volume of Service to separately research its influence to the Chinese outward foreign direct investment. Moreover, this study will intentionally classify the selected170countries (regions) in to two parts that one is the developed countries and the other is the developing and underdeveloped countries. Then, this study could make the regression analysis of the overall and subdivided category samples using the method of static and dynamic panel model.At first, this study analyzes the characteristics of Chinese outward foreign direct investment that is its agglomeration to the Service industry since2003. In the aspect of investment flows, the investment in Service industry has accounted for more than half of the Chinese total outward foreign direct investment since2006. Moreover, the proportion of in the Chinese OFDI has progressively risen in2006-2011, and the annual average proportion is as high as67.1%, especially in the year of2008that the highest proportion is81.5%. In the subsector of Service industry, the three sectors of wholesale and retail, finance, and wholesale and retail account for the more proportion, and they has always been the essential sector of the multinational enterprises’investment. In the aspect of investment stocks, the annual average proportion of Service industry has accounted for73%in the six years, and leasing and business services sector is also the fastest growth and the biggest proportion sector in the Service industry. In the aspect of investment enterprises abroad, the annual average proportion of Service industry has also reached to47.8%in the four years from2008to2011, and the sectors of wholesale and retail, leasing and business services, transportation, warehousing and postal service rank the first three departments. As a consequence, this study reckons that the phenomenon of rapid expansion of outward foreign direct investment to the Service industry is bound to have a certain correlation with the development of host country’s Service industry, and there are some channels of the host country’s Service industry to attract the Chinese outward foreign direct investment.Then, based on the existing research literature about the speculative motive of the Service industry and the specific sectors, this study creatively come up with two kinds of the attraction that are the added value of Service industry and the trade volume of Service of the host country, and analysis how the two factors attract the Chinese OFDI in details. On the one hand, the modern Service industry can generate high volume of the added value, the input costs are relatively lower than manufactories, and the experience and management of service could be easily transplanted to foreign investment enterprises. Therefore, the Service industry’s high profits are the source to attract the multinational companies’investment and this is also the survival foundation and competitive target of the MNCs. Besides, some MNCs have to make the OFDI to pursue the overseas’market margin due to the fact that some service products are still difficult to trade. So when the potential added value in the host country is high, this will appeal to the enterprises’ investment. On the other hand, when the trade development of the host country is more advanced, the business ties between the two countries will be closer which would benefit the relations of the goods or services trade, so the effect of investment promotion would be more obvious. Besides, this will have strong attraction for the sustainable development of the home country’s trade, and thereby it could give rise to the home country’s investment. Taken the two factors outlined above into account, this study put forward its hypothesizes, i.e., the high added value in the host country’s Service industry has a profound positive impact on the Chinese OFDI, and the more advanced development of the host country’s trade is, the more attraction to the Chinese OFDI would have. At the same time, this paper will also consider the factors of market-pursuing OFDI, the natural resource-pursuing OFDI and the strategic resource-pursuing OFDI in order to combine the existing research literatures.Finally, based on the correspondingly present situation and theory analysis discussed before, this study use the panel data of Chinese OFDI to170host countries to do the econometric analyze with static and dynamic models. This paper focuses on the impact of the added value of Service industry and the trade volume of Service to Chinese OFDI while make the host country’s per capita GDP, natural resources endowment, high-tech exports, patent number, the rate of inflation and the national geographic distance as the control variables. By analyzing the corresponding inspections, this study gains the following conclusions. Firstly, from the static model, the Chinese OFDI really prefers to the host country’s (region) development of Service industry, and the two factors of Service industry show a significant positive correlation to Chinese OFDI which supports the hypothesis in this study. Besides, the function of promotion is greater in the developed countries. Secondly, from the dynamic model, the Chinese OFDI has its own dynamic continuity. Even so, the development of host country’s Service industry can still significantly attract Chinese OFDI. When the value-added and trade volume in Service industry increases by1%, the Chinese OFDI will increase by0.465%. Similarly, the promoting effect would be more attractive in the developed countries.The innovation of this study can be boiled down to the following three aspects. The first one is that this paper studies the influencing factors of the Chinese OFDI from the perspective of the development of host country’s Service industry and divides it into two parts that are the added value of Service industry and the trade volume of Service. The second one is the creative conclusion that the development of host country’s Service industry is actually one the prominent factors that promote Chinese OFDI, and the function of promotion would vary from the levels of the host country. The third one is the method used in the empirical study that combines the static and dynamic panel model, which enhances the robustness and the comparability of the regression.Of course, although this study has creatively explored the impact generated by the development of host country’s Service industry to the Chinese outward foreign direct investment, there are still some drawbacks in the theory. Similarly, the perspective and methods of this paper have a certain degree of inventiveness, but it inevitably needs the gradual improvement in the future. It is perfectly justify for us to believe that with the sustainable development of Chinese outward foreign direct investment and the persistently thorough research, there must be more comprehensive discussions from the perspective of the development of the host country’s Service industry in the near future. |
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