Heterogeneity Of Chinese Manufacturing Enterprises And Their Choice Of Foreign Direct Investment

Since the reform and opening-up,China has promoted the productivity and innovation level of enterprises by introducing foreign capital.In recent years,with the deepening of the reform of supply side economic structure,the launching of strategies of Yangtze River Economic Zone,the "One Belt,One Road",China will face geopolitical and economic restructuring,the internationalization of enterprises will become the coordination of"introducing" and "going out".In 2014,the total amount of foreign capital invested by Chinese enterprises exceeded the total amount of foreign investment for the first time.Chinese enterprises’ heterogeneities,such as enterprise productivity,enterprise size,enterprise capital,and so on,play an important role in process of OFDI.In this thesis,we use the data of Chinese industrial enterprises from 2004 to 2012 to analyze the relationship between Chinese enterprises’ heterogeneities and OFDI decision making,using the Logit model.We chose the enterprise productivity,enterprise scale and enterprise capital density as the three core variables.Meanwhile,we chose the business life span,whether owning state capital or foreign capital and whether trading with other countries as the control variables.Through the analysis we found that,first,on the whole,enterprise productivity,enterprise scale and enterprise capital density will promote enterprises to invest overseas,but the control variables performance varies with other;second,unlike the first two stages,in the post-financial crisis stage,enterprise productivity show the opposite impact on enterprises OFDI decision-making,indicating that our country’s enterprise productivity is weakening in enterprises’ OFDI decision-making.When we conducted a subregional study of countries along the "One Belt,One Road" startegy,we found that in the background of "One Belt,One Road" strategy,the influencing factors of the OFDI decision in China’s enterprises are different.The higher the productivity of the enterprises,the more inclined to invest directly in West Asia and North Africa;the larger the scale of the enterprises,the more inclined to OFDI in East Asia,but the performance in Western Asia and North Africa is opposite;the higher the capital density of the enterprises,the greater the probability of OFDI in Central Asia,the smaller the probability of OFDI in central and Eastern Europe,West Asia and North Africa.Fourthly,from the analysis of the subdivision industry,we found that in the industry of textile and garment,special equipment manufacturing,communications equipment,computers and other electronic equipment manufacturing,Transportation equipment manufacturing and pharmaceutical manufacturing,enterprises’ productivity rate is an important driving factor OFDI.At the same time,enterprise scale and enterprise capital density in all the subdivision industries have positive effect in promoting enterprises to do OFDI decision-making.Finally,according to all the above analysis,we put forward the corresponding countermeasures and suggestion to our country and enterprises in decision-making.