The Analysis On Trends And Effects Of China’s Outward Foreign Direct Investment

Follow the pace of Reform and Opening, China’s outward foreign direct investment have gone through30years. It reached the bottom in2000, and it rapidly grew in2008. By the end of2012. the flow of China’s outward foreign direct investment was as high as$87.8billion, and it distributed179countries and regions. At that time it is the third place in the world. At present, the domestic and external environment is also changing. The Government Work Report have given attention to foreign investment and it puts forward the new idea; After the international financial crisis in2008. the nations needed a lot of money into economic growth in a recovery phase. Overall, domestic and external environment is steady growth. Exploring the influence factors of China’s outward foreign direct investment has the necessary practical significance in the stable environment.This paper combines normative analysis and empirical analysis. In normative analysis section, we use the qualitative analysis to discuss the present situation and characteristics of foreign direct investment. Combined with the output of influencing factors of the empirical analysis, this paper put forward measures to promote China’s outward foreign direct investment. This essay selected36host country’s direct investment and used econometric analysis software Eviews7.0in a sample of2003-2012period to discuss. The sample period is divided into two periods:2003-2010is a changing times whereas2011-2012is a stable period. Through the contrastive analysis of quantifiable macro factors in these two periods:market scale, the wage levels. China’s exports, we found it is significance of China’s outward direct investment for the host country under the condition of the policy and domestic environmental stability. The main conclusions are as follows:the influence of the market size in host country has a significant negative effect on its direct investment in China. However, the host country wage level and the host country of China’s exports sum have significant positive effects.