Study On The Outward Direct Investment Of China's Enterprises

Since the second half of the 20th century, international direct investment activities aiming at achieving global optimal configuration of resources and increasing market share develops rapidly, which thus promotes the optimal configuration of capital, technology and elements of production within the scope of globe, leads to the-accelerated formation and expansion of economic globalization. Or we can say it is the economic globalization makes the activities of resources configuration become frequent. As a big country carrying our opening-up policy, China has made remarkable achievements in attracting foreign investment, but its outward direct investment remains sluggish, which is not commensurate with the continuous enhancement of China's comprehensive economic strength and its status in the world economic structure. Therefore, it's meaningful to make a systematic analysis on Chinese enterprise's direct investment to outside.Based on the basic theories, the paper systematically introduces the concept,types, and role and some related classical theories of outward direct investment. Aftera brief review on the development stage of Chinese enterprise's outward directinvestment, the paper analyzes its current situation, features, economic effects and theproblems existing, concludes that outward direct investment has a positive on China'sindustrial restructuring and technical progress, export, international payments,employment, while there are still lots of problems on government'smacro-management policies and micro-management mechanisms of enterprises,which have gradually become an obstacle to the further development of outwarddirect investment. Afterwards, using the method of qualitative analysis combined withquantitative analysis, the paper studies the factors affecting outward direct investmentof China's enterprises and draws a conclusion that the factors affecting outward directinvestment of China's enterprises are not only related with the scale of market,exchange rate, wage, etc of the host country, but also related with our own level ofeconomic development, exports, government policies. Finally, based on previous analysis, the paper puts forwards some suggestions on how to accelerate the pace of outward direct investment from both macro and micro aspect.From several angles, the paper systematically studies outward direct investment of china's enterprises, especially analyzes the factors affecting outward direct investment of china's enterprises by constructing mathematical model, which thus improve the weakness of lacking empirical analysis on outward direct investment.