Research On The Impact Of The Investment Environment Of Countries Along "the Belt And Road" On The Efficiency Of China’s Direct Investment

Since “the Belt and Road” initiative was put forward,China’s direct investment in countries along the route has continued to increase in “volume”.However,affected by the international political and economic situation,there are still a series of “quality”problems in China’s direct investment in countries along “the Belt and Road”,which hinder and restrict China’s direct investment to a certain extent.Therefore,on the basis of expanding the scale of foreign direct investment,how to improve the efficiency of foreign direct investment,fully tap the investment potential,optimize the investment space layout,and realize the high-quality development of foreign direct investment is an important problem to be solved urgently at present.The "the Belt and Road" covers a wide area,and the investment environment of countries along the line is quite different,and the differentiated investment environment will have a greater impact on the efficiency of China’s direct investment in countries along the line.In order to further consolidate the investment foundation of China and the countries along the route and achieve high-quality and sustainable growth of foreign investment,this paper constructs the evaluation index system of the host country’s investment environment from a multi-dimensional perspective,uses the principal component analysis method to objectively evaluate the investment environment of the countries along the route from a diversified perspective,and incorporates it into the investment inefficiency model,uses the stochastic frontier analysis method to empirically analyze the impact of the host country’s investment environment on investment efficiency,calculates China’s investment efficiency and potential development space in countries along “the Belt and Road”.In addition,in view of the research gap at the industry level,this paper combined with the “China global investment tracking report”,makes a heterogeneous empirical analysis and efficiency value calculation of China’s direct investment efficiency in energy,transportation and real estate industries;Finally,based on the empirical analysis,this paper puts forward relevant policy suggestions to improve the quality and efficiency of China’s direct investment in countries along the route.This has great practical significance for further optimizing the investment layout,promoting deeper diversified investment cooperation between China and countries along the route,and achieving mutual benefit and win-win results.This article mainly conducts specific research from the following seven aspects:The first part is introduction.The profound and complex changes in the current global political and economic structure,and the increasing trend of China’s investment in countries along “the Belt and Road” provide an important research background for this paper.On the basis of literature research,the main content and research framework of this paper are introduced.The second part is the theoretical basis and mechanism.On the basis of combing the evolution process of foreign direct investment theory,this paper deduces the model from the theoretical mechanism,and analyzes the mechanism of the host country’s investment environment affecting the efficiency of direct investment,based on the theories of contract quality and transaction cost,so as to provide a theoretical basis for the following empirical analysis.The third part is the analysis of the status quo of China’s direct investment in countries along the route.On the basis of systematically combing the overall development status of China’s direct investment in countries along the route,this paper points out the main obstacles and challenges that China faces in direct investment in countries along the route.The fourth part is the measurement and evaluation of the investment environment of countries along “the Belt and Road”.In order to objectively and comprehensively evaluate the investment environment of the countries along the route,this paper constructs an evaluation index system based on the six aspects of the host country’s business environment,financial and economic environment,labor supply environment,policy and legal environment,political environment,and infrastructure environment,and uses the principal component analysis method to calculate and analyze the investment environment level of the countries along the route.The research shows that the overall investment environment of the countries along the route is at the “medium” level and tends to improve gradually.The fifth part is an empirical study on the impact of the investment environment of countries along “the Belt and Road” on China’s direct investment efficiency from the national perspective.First,construct a stochastic frontier gravity model,introduce the measured investment environment score of the countries along the route into the model as an investment inefficiency item,and conduct an empirical study on the efficiency of China’s direct investment in the countries along the route based on the full sample data;Secondly,this paper makes an empirical test of heterogeneity from the two dimensions of geographical region and income level;Finally,it further calculates and analyzes China’s investment efficiency and investment potential in countries along the route.The research shows that the host country’s business environment,policy and legal environment,infrastructure environment are negatively correlated with the loss of investment efficiency;Financial and economic environment,political environment and investment efficiency loss are positively correlated;Labor supply environment has no significant impact on the loss of investment efficiency;The efficiency of direct investment in the countries along the route is characterized by low levels and large differences;China’s direct investment potential in all regions along the route has shown an upward trend year by year.The sixth part is an empirical study on the impact of the investment environment of countries along “the Belt and Road” on China’s direct investment efficiency from the perspective of industry.This paper selects the energy industry,transportation industry and real estate industry,uses the stochastic frontier gravity model to analyze the relationship between the investment environment of the host countries in different industries and the efficiency of China’s foreign direct investment,and further measures the investment efficiency,in order to provide industry-based decision-making reference for China’s foreign direct investment.The research results show that the labor supply environment,policy and legal environment of the host country have a significant impact on improving the investment efficiency of the energy industry.The improvement of the policy and legal environment will help improve the investment efficiency of the transportation industry,while the good policy and legal environment and infrastructure environment can improve the investment efficiency of the real estate industry.From the comparison of efficiency value,China’s investment efficiency in the real estate industry is the highest and the fluctuation range is the largest;The investment efficiency of energy industry is in the middle,and the investment efficiency of transportation industry is the lowest and the fluctuation range is small.The seventh part is the research conclusions and countermeasure suggestion.On the basis of systematically summarizing the research conclusions of the full text,this paper puts forward corresponding countermeasures and suggestions from the national,industrial and social levels,so as to provide useful decision-making reference for realizing the improvement of quality and efficiency of China’s direct investment in countries along “the Belt and Road”.