The Comparison Of China’s OFDI To Developed Countries And Developing Countries

Under the background of world foreign direct investment overall downward, China’s foreign direct investment has increased, China’s FDI belongs to the foreign direct investment in developing countries, it is different from the traditional foreign direct investment in developed countries.Traditional theory is only suitable for directly to explain the investment of developed countries to developing countries,but not suitable for the investment from developing countries to developed countries.In this paper, the first part is the introduction.The second part of this paper reviewed the development course of China’s foreign direct investment(fdi), and describes and analyzes the present situation of China’s foreign direct investment.First of all, this chapter analyzes the present situation of OFDI from country, industry, region, and ownership four angles,then from the Angle of developed countries and developing countries.Finally compares China’s direct investment in developed countries and developing countries.The third part of this paper expounds the factors that affect China’s foreign direct investment.The main factors that influence the location choice of china’s OFDI is just as follows:The host country’s affluence;The trade relationship between the home country and host country;The technology level of the host country; the system of the host country factors; the host country’s factor endowments.Then,respectively analyzed resources, technology, and institutional factors for the developed countries and developing countries to attract foreign capital,and make a comparison between developed countries and developing countries.The forth part of this paper uses panel data of China from 2004 to 2012, we made empirical analysis on foreign direct investment. Carried on the regression analysis on China’s foreign direct investment in the overall, Chinese investment in developed countries, Chinese investment in developing countries.Found that China’s investment in developed countries, unlike investment in developing countries, China’s investments in developed countries with the technology for motivation.But the technology-oriented investment is negatively related to the patent in the developed countries.China’s foreign direct investment in developed countries and developing countries have resources motivation,but China resources-oriented OFDI in developed countries and is related to the rule of law,and China resources-oriented investment in developing economies is negatively related to rule of rule of law.At the same time proved that the conclusion of forefathers’ research China’s foreign direct investment as a whole, is negatively related to the host country of the rule of law level.Innovation point of this article is, through China’s foreign direct investment zone can be divided into two ways of developed countries and developing countries, proves that the characteristics of China’s OFDI for developed countries,it is different in China’s OFDI general characteristics and the characteristics of Chinese investment in developing countries.Examines the geographical distribution of China’s technology oriented investment.