The Research Of Effect Of Host Country’s Infrastructure On The OFDI Location Choices Of China Under The Background Of "One Belt One Road"

Since 2013, our country has promoted the development strategy of "One Belt One Road" (Silk road economic belt and the 21st century maritime silk road). Now there are 64countries made it clear that they are willing to participate in the development strategy of "One Belt One Road". On January 16,2016, the Asian infrastructure investment bank (AIIB) officially opened. It not only provides financing support for "One Belt One Road" countries, also offer help for Chinese enterprises to outward foreign investment. The outward foreign direct investment of Chinese enterprises stated late, but it developed rapidly. So, under the background of "One Belt One Road" and the support of AIIB, how will be the development of Chinese outward foreign investment? What the level are the country of "One Belt One Road"? What the impact of the host country’s infrastructure on the OFDI of Chinese enterprises? How will the decision on the locational choices of Chinese enterprise OFDI? These is the problem that we will study on this paper.Theoretical analysis of this paper, first of all, on the basis of predecessors’research defined the concept of infrastructure, and according to the study by the world bank, will be divided into two major categories of economic and social infrastructure. A combination of the World Bank, OECD and UNCTAD definition of foreign direct investment, is given in this paper, the research concept, and expounds the concept of location selection. Then combed the main multinational investment theory, including the new classical location theory, new economic geography, foreign investment theory of the enterprise heterogeneity. On the basis of these theories and analyses the influence of host country infrastructure, the influence mechanism on the locational selection of Chinese OFDI. The new economic geography point of view, the host country the improvement of infrastructure can promote the formation of industrial agglomeration, and reduce trade cost, and attract the investment in China. From the heterogeneity of foreign investment theory, the perfect infrastructure of the host country can reduce the cost of investment of foreign enterprises, so as to appeal to our country transnational investment location choice. Overall, China’s foreign direct investment location tend to infrastructure areas.Then, based on the World Bank WDI database, this article analyzes the situation of infrastructure of the country along the "One Belt One Road". In general, European countries generally high levels of infrastructure, Asian countries, southeast Asian countries overall is relatively good, relatively perfect in energy infrastructure in the Middle East, but the majority of Asian countries, especially the inland country in Asia such as central Asia’s infrastructure level needs to be improved. Then analyzed about the present situation of our country’s current foreign investment, large flow and stock of foreign investment in China, on the one hand, tend to invest in the developed countries, on the other hand, tend to invest in Asia countries, and the investment that China invest on "One Belt One Road" is very great. Last, we connect the situation of the host countries infrastructure and the situation of our country’s current foreign investment, and analysis the present relationship.On the empirical, this article uses dynamic panel data of Chinese outward foreign investment from 2003 to 2012, use system GMM estimation method. In addition to seven infrastructures as the core variables, we also included five control variables, including the size of market, the environment of political and regulation, the degree of economic openness, the degree of rich resources and the density of population. After the stationarity test, the paper is used to estimate system GMM In the empirical results, the economic infrastructure is in line with expectations, that traffic, energy, information infrastructure has a significant positive influence on our country’s outward foreign investment. It shows that the improvement of infrastructure of the host country economy to our country enterprise transnational investment location is attractive, but had no significant influence social infrastructure.Finally, based on the theory of transnational investment, the situation of infrastructure of the country along the "One Belt One Road", the present situation of our country’s current foreign investment and the empirical results, this article puts forward five policy implications.