| With the acceleration of global economic integration, the breadth and depth of China’s opening up expands rapidly, especially the implementation of the 2014 China’s government "The Belt and Road" strategy, further boosts and guide more and more China’s enterprises to "go out" to carry out OFDI actively, constant participate in international competition and expands international market share. After many years of development, the flow and stock of China’s OFDI has increased substantially, China has become a true net capital exporting country.Although China’s OFDI has achieved great progress, however, compared with the developed countries, there are still a series of problems in China’s enterprises’OFDI, such as unbalanced investment structure, low investment success ratio, round-tripping and so on. As the development of China’s economy is a process of marketability, it is also an institutional change in the largest scale, so the rapid development of China’s OFDI and its characteristics and problems are closely related to institutional factors. According to the home country institution, state-owned enterprises and state-held enterprises are dominant in China’s enterprises’OFDI at present, compared to other enterprises, these enterprises are always influenced by national development strategy in carrying out OFDI, then making them independent overly on domestic institution. According to the host country institution, the enterprises’OFDI should consider the influence of double bilateral investment treaties, cultural distance, political risk and other host institution factors. According to the institutional distance, the enterprises face a larger adaptational costs when enter foreign markets, the cost is the enterprises need to make a series of adjustments to meet the requirements of the local institutional environment, in order to reduce the costs of adaptation, enterprises will select the countries and regions which has priority institution with home country. The existing literature research just consider their respective influence of institutional factors on China’s enterprises’OFDI, not put these factors together for a comprehensive analysis, specifically less the study on China’s enterprises’OFDI. Through theoretical deduction and empirical analysis, this paper shows the paramount influence and function of the institutional factors on China’s enterprises’ OFDI, and this influence and function are complex, and it is necessary to study from a comprehensive perspective to take into account the specifieness of China’s and other national enterprises in OFDI. Therefore, making a comprehensive analysis of the influences of three items of host country institutional factors, home country institutional factors, institutional distance on China’s enterprises’OFDI, not only test the applicability of ralated theory, but also lay the foundation for further development of theory, so the research has great theoretical significances.At the practical significances, by digging out the internal mechanism of institutional factors that have effects on enterprises" OFDI, this research is able to offer decisions and experience to carry out enterprises’OFDI holistically, keep a favorable position in the international competition. This research could also provide governments with theoretical references on establishing relevant OFDI institutions and promotion policies. In addition, for those developing countries’enterprises which overall strength is not strong, especially those involved in "China Belt and Road Initiative", this research has great practical significances.The main contents of this research are listed as follows:Firstly, this paper analyzes the impact mechanism of institutional factors on enterprises’ OFDI and conceptual model construction. The paper puts forward the institutional factors at first-building a model of the relationship on China’s enterprises’ OFDI, then respectively from three aspects of the home country institutional factors, the host institution factors and institutional distance to analyze the effect mechanism of institutional factors on China’s enterprises’OFDI. Finally, it puts forward the corresponding conceptual model.Secondly, based on 1984-2012 China’s OFDI annual flow data, and time series data analysis method, the paper empirically analyzes the effect of home country institutional factors on China’s enterprises’OFDI.Thirdly, based on 2003-2012 China’s OFDI stock data for 56 countries or regions, the paper uses random effects panel data model to empirically analyzes the effect of traditional economic factors, supranational institutional and the host institutional factors on China’s OFDI.Finally, the paper utilises the 2003-2013 stock data for China’s OFDI to 162 countries to comprehensive tests the effects on China’s enterprises’ OFDI that caused by the institutional distance by using the pooled cross section data analysis and panel data analysis.This paper gets the following conclusions through the above research:Firstly, the home country institutional factors have significant promoting effects on China’s enterprises’ OFDI. Among them, the government policy support, law and order, the investment environment, the domestic credit, savings and economic development level have positive effect on OFDI. The government policy support significantly promotes the increase of OFDI flow, but the influence coefficient is negative. That is the government stability is a negative impact on China’s OFDI, the more unstable the government is conducive to the development of OFDI. The two measure of home country institutional quality indexes of social and economic conditions, corruption control have no significant effect on OFDI. Domestic credit and savings rate, as a measure of financing environment, promote the increase of China’s OFDI flow significantly. Export dependence has a negative influence on China’s OFDI, but the impact is not significant.Secondly, the host country institutional factors have a very significant influence on China’s enterprises’OFDI. Bilateral investment treaties play a significant role in China’s OFDI. The impact of the dual taxation avoid agreement on China’s OFDI is not significant, which is similar with most of existing research, that is the double taxation agreement has relatively weak influence compared with other invest decision factors. And WTO members are the important factors that affect China’s OFDI. Obviously, compared with non-members, member’s direct investment was 70.43% higher than the former. Cultural distance as an informal institution significantly promoted the increase of China’s OFDI. The closer the culture degree, the more by reducing information cost, transaction cost and transaction risk stimulate investment increase. Political risk significantly inhibits the increase of foreign investment. Market openness is an important factor affecting China’s investment in developing countries, the more open the host country the more conducive to attract China’s OFDI.Thirdly, institutional distance hinders the China’s enterprises’OFDI. The more increase of the institutional distance, or the larger the institutional differences between the two countries, the smaller China’s enterprises’ OFDI to the host country will be. Therefore, the influence of institutional distance on China’s enterprises’ OFDI is negative, and the negative effect is very significant.Compared with the previous studies, this study has the following innovations:Firstly, this paper considers comprehensively the effect of host country institutional factors, home country institutional factors and institutional distance three aspects factors of China’s OFDI. The mechanism of the influence factors of China’s OFDI system was discussed. Through theoretical inducement and empirical analysis, this study concludes that institutional factors have an important influence on China’s enterprises’ OFDI, and this effect is complex and needs to be investigated from a comprehensive perspective. This is different from the previous literature which analyze from a single perspective about the impact of institutional factors on China’s enterprise’ OFDI.Secondly, the paper selects proxy variables from several aspects to make empirical research, the estimation is more moderate and the conclusions are more specific and comprehensive. As analyzing the influences of institutional factors of home country on China’s enterprises’ OFDI, this research chooses the International Country Risk Guide (ICRG) indicator to measure the institutional quality. When analyzing the influences of institutional factors of host country on China’s enterprises’ OFDI, this research selects bilateral or regional supranational institutional factors and formal or informal institutional factors like politics, economy, commerce and culture distance. When analyzing the influences of institutional distance on China’s enterprises’ OFDI, this research controls speech rights and accountability, political stability, oppose violence and terrorism, government efficiency, quality supervision, rule of law and control of corruption and other institutional factors.Thirdly, the paper comprehensively uses estimation methods of mixed cross-sectional OLS estimation, the time series estimation and panel data estimation etc., finds that the institution is an important factor affecting on China’s enterprises’ OFDI. The paper uses the time series data model to estimate the impact of institutional factors of home country on China’s enterprises’ OFDI, finds the good law and order and the invest environment improvement could improve China’s enterprises’ OFDI, and the relationship between the government and the stability of China’s enterprises’ OFDI is negative. The paper uses mixed cross section model and panel data model, finds that sign a bilateral investment treaty with host countries, as a member of the WTO status and the decline of cultural distance significantly promote the China’s enterprise’OFDI, the increase of political risk of host country significantly reduces the China’s enterprise’ OFDI on the host country. This paper uses the mixed cross-sectional estimation and panel data fixed effects estimation, finds the increase of institutional distance of home country and host country by using various dimensions, reduces China’s enterprise’ OFDI significantly.
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