The Empirical Research Of The Factors Of China's Agricultural Outward Foreign Direct Investment

The protection of China's accession to the WTO in July 2015 is over.Including agriculture,Industries of our country further intensify the degree of opening to the outside world.The foreign capital to enter the domestic market in great quantities,agricultural enterprises in China not only faces competition from domestic manufacturers,but also to cope with the challenge of foreign capital.Domestic market competition is becoming larger and larger,at the same time,many developed countries to strengthen the control of strategic agricultural products such as soybean,corn,making the prices of international market agricultural products increase continually.Although the foreign direct investment in China has developed rapidly after the reform and open policy,and the amount expanded continually,but the field of agricultural proportion is very small,the agricultural foreign direct investment in 2013 accounts for only 1%of the total foreign direct investment in China,rising to 6.3%in 2014,but the investment ratio is still small compared to the size of the second and third industry,the agriculture foreign direct investment in our country is still in the initial stage of development,needing a long time to expand the scale of investment.On the other hand,by 2015,China's food production have been maintain growth in twelve years,but the agricultural production faces many problems,such as increased pollution,decrease of cultivated land area,soil fertility decline and the shortage of fresh water resources and farmers' low enthusiasm in graining makes our domestic food shortages intensified.Under the condition of the domestic and international background,our country's agriculture foreign direct investment is very important.By reviewing the previous scholars' researches,found that most scholars focused on foreign direct investment research,having less independent involving agricultural OFDI literatures.In this paper,by analyzing the relevant theories of foreign direct investment,combined with the previous scholars' researches,from the perspective of the host country and investor country to analyze the affected factors.In this paper,the third chapter expounds the influence mechanism of the agricultural OFDI,(1)The development of agricultural economy has an important effect on the agricultural OFDI;(2)Our country's agriculture OFDI affected by the fiscal policy is large in the present stage(3)Export has a promoting effect to our country's agriculture OFDI,in line with the comparative advantage theory(4)Our country's agricultural FDI positively correlated with the host country's wage rate,shows that our country's OFDI tend to choose the lower labor costs' countries and regions.Because it is hard to find agriculture foreign direct investment specific data,so most of the domestic scholar's research mainly focused on the qualitative discussion,such as the agriculture present situation analysis,the foreign direct investment location choice.In this paper,the integrated use of qualitative and quantitative analysis methods,make the agriculture OFDI as the research object,and do a comprehensive analysis which including the host countries and investor countries'possible factors,partial least square regression was carried out to do the possible influencing factors' empirical analysis,to reveal the importance of all the factors,so the conclusion of this article for later scholars on the research of this field have a certain reference significance.But it is difficult to get the monthly or quarterly data of the agricultural foreign direct investment,so the data quantity is less,causing the collinearity between the influence factors is stronger,it also led to a certain limitations on the choice of the influencing factors,may missing some important influencing factors;While using the partial least squares regression analysis,weaken the collinearity between variables,but it still lack of rigors.Finally,the paper according to the present situation of our country agriculture OFDI,combined with the result of the impact mechanism analysis and empirical analysis,respectively from the government and enterprise level,puts forward some policy suggestions for the China's agricultural enterprises to better develop OFDI under the current environment.