The Research On The Influence Of Cultural Difference To China' S OFDI In ASEAN

2016 is the 25th anniversary of the establishment of dialogue between China and ASEAN.From the past 10 years of the situation of China's outward foreign direct investment(OFDI),more and more Chinese enterprises focus on this piece of land in ASEAN,and the total amount of OFDI expanded year by year,growing rapidly.However,among the numerous influential factors of OFDI,cultural difference is becoming more and more prominent.Perceiving and distinguishing cultural differences and implementing effective coping strategies is the necessary way for every Chinese firm to engage in OFDI in ASEAN.To this end,this paper mainly to explore the impact of cultural difference to China's OFDI in ASEAN,then conduct deep analysis centered on the direction and degree of influence and solutions of eliminating cultural misunderstanding or cultural conflict.Based on the collation of relevant theories and literatures,firstly,the paper specifically analyzes the current situation and characteristics of China's OFDI in ASEAN,and explains the problems and risks in the process of investment.Secondly,from the perspectives of Hofstede's cultural dimensions theory and business culture,the paper compares the cultural differences between China and ASEAN separately,and reveals that there are obvious cultural differences between China and ASEAN countries.Thirdly,by observing the spatial distribution of cultural distance and direct investment,the paper analyzes the correlation and the dynamic evolution process of investment.Then,applied the extended Gravity Model,selects the relevant data of China's OFDI in ASEAN from 2003 to 2015,set China's direct investment stock in ASEAN as the explained variable,quantizes the cultural differences between China and ASEAN by three indicators,and use the method of panel regression to deeply analyze the impact of cultural difference on China's OFDI in ASEAN.What's more,the results show that cultural differences have a significant impediment to China's OFDI inASEAN,and Chinese companies are more inclined to invest in the country with less cultural differences.Afterwards,combined with empirical results,the paper explores the specific strategies to cross-cultural management of China's OFDI in ASEAN with the typical cases of New Hope Group and Guangxi Guohong Development Corporation.Finally,puts forward the policies and suggestions to promote China's OFDI in ASEAN from the perspective of optimizing cultural difference.