Study Of Chinese Enterprises Outward Foreign Direct Investment Location Choice

With the development of economic globalization advancement,Chinese reform and opening-up policy,and the adjustment of industrial structure,China's economy has developed rapidly,especially the scale and scope of Chinese firms OFDI.After years of development,the flow and stock of Chinese firms OFDI has obtained sharp increase,and now China has become a veritable net capital exporter.In recent years,China,as a emerging country,the rapid increase of OFDI has caused a wide attention from all over the world.But there is still a certain gap compared with other development countries.As later-coming companies in the international market,Chinese firms suffer inevitable "latecomers disadvantages".By researching the foreign and domestic literatures,institutional elements are found to be the important influential factors on Chinese firms OFDI location choice.Firstly,the paper focuses on the host country's institution,analyzing the influence of the host country's political system,economic system and cultural similarity on Chinese firms OFDI location choice.The paper analyses the influence of host country's institution on Chinese firms OFDI location choice by using the stock data of Chinese firms OFDI to seventy-six countries from 2005 to 2014 with stata 12.0 software.The study found that the host country's political system,economic system and Chinese firms OFDI has a negative correlation,the cultural similarity positively influence Chinese firms OFDI.Secondly,Chinese firms OFDI has diversified investment motivations,namely resource-seeking,market-seeking and strategic asset-seeking.In the paper,seventy-six host countries are divided into three categories,respectively analyzing the impact of host country's political system,economic system and cultural similarity on Chinese firms OFDI based on different motivations.The study shows that Chinese firms prefer to different institutional environment with different investment motivations.Resource-seeking firms tend to invest to poor political system and low economic freedom host countries.Market-seeking firms prefer to poor political system and high economic freedom host countries,and strategic asset-seeking firms prefer to high cultural similarity host countries.Finally,based on the conclusions of this study,specific policy recommendations are put forward to improve Chinese firms OFDI,from the perspectives of government and enterprises,then point out the shortcomings of this study and the direction of future research.