Chinese International Promotion Effects On Export Trade And OFDI

The international promotion of Chinese is of great significance in upgrading the Chinese’s status in the world language system, one would be able to increase the number of Chinese-speaking in the total population of world, on the other hand to promote cultural understanding of foreigners to our country, which can reduce the transaction costs in the trade and investment activities. Based on the 2001-2012 panel data of 22 countries cited the gravity model, we analyze the impact of the international promotion of Chinese on Chinese exports and foreign direct investment, empirical results show that the relationship between the international promotion of Chinese and China’s export trade is not significant, but the relationship with China’s foreign direct investment is significant. And then we classified the total sample into two sub-sample from the perspective of Hofstede’s cultural dimensions, separately explores the effect of Chinese promotion between countries with different culture distance on exports and foreign direct investment, and the results show that when we promote Chinese in that countries which have a larger cultural differences compared to China, the effects on China’s export trade and foreign direct investment is significant, and promoting Chinese in that countries which have similar culture with our country, the effects on trade and foreign investment is not significant.