Anempirical Study Of The Impact Of Cultural Distance On The OFDI Choice Of China Enterprise In One Belt One Road Countries

This paper mainly discusses about the impact of cultural distance on OFDI choice of Chinese enterprises based on the data of One Belt One Road relative countries.Based on the test of multiple motivation of FDI,this paper further discussed on the relation between cultural distance and FDI.One Belt One Road remarks for a new stage of policy of China FDI strategy.From the historical perspective,the proposal has strong historical background.From the research perspective,relative countries have obvious diversity in terms of culture in history,which gives reference meaning for the research.Culture is also an important factor in the international business practice analysis.The understanding of this problem is good for decrease of the cultural conflicts and investment barriers.So this paper chooses the cultural distance as the research point for Chinese enterprises.With the retrospect of the relative research paper about FDI and feature of Chinese FDI,this paper finds that the motivation of market searching and resource seeking tend to uniform,while the research on cultural distance remains more test and discussion.This paper finds that the cultural distance is of meaningful importance for Chinese enterprises.Moreover,this paper introduces the measurement of the cultural distance based on the Hofstede cultural value and KSI index to study the cultural distance between China and relative countries.From the perspective of measurement mythology,this paper combines the quantitative methods and case study to work on this problem.In the quantitative study,this paper chooses the OFDI data of China to 34 One Belt One Road relative countries from 2005 to 2015.The result shows that cultural distance is in negative correlation with OFDI of Chinese enterprise.Among the different value of the cultural distance,this paper finds that uncertainty avoidance and individualism have more obvious impact on OFDI.On the case study of the China and Thailand project,this paper also finds that the differences on the cultural distance have important impact on the cooperation of investment.