The Comprehensive Evaluation And Empirical Study Of The Risk Of China’s OFDI

Under the background of economic globalization deepening,scale and frequency of China’s investment in other countries have been greatly increased.However,in this process,the host country risk faced by Chinese enterprises is also more complex.Because domestic comprehensive risk research is lacked,for the host country enterprise before the investment for the host country,facing the comprehensive risk assessment is a difficult problem.While this artical combines the common breakdown risk,as well as the overall risk of breakdown risk has made the theoretical analysis and the integrated data estimation,has a certain practical significance.This article first introduces the basic concept and basic theory of foreign direct investment,construct a krugman monopoly competition under open economy model,by comparing the expected utility and enterprise profit,the relationship between gradually deduced enterprise may direct investment conditions of a country.Then,this article from the constituent elements of risk,risk preference,and on three levels:the investment motive,discusses in detail the host country risk affect the inner mechanism of the enterprise of foreign direct investment in China.In this artical,a combination of literature,selected several kinds of risk factors play a leading role.In the level of risk appetite,assuming that our country enterprise in foreign direct investment has the characteristics of risk appetite,then companies will tend to invest to the higher-risk countries.On the investment motive,foreign direct investment of Chinese enterprises,seek,resources,market and technology for characteristics.Under different motives,the host country risk impact on our country enterprise OFDI mechanism is also different.In the aspect of risk measure,this paper uses the improved principal component analysis(PCA),measure the risk value of the selected samples.Risk value can be obtained from all countries,developing countries of relatively high comprehensive risk value in general.And analysis the risk of volatility,the our country enterprise to the conditions of the direct investment of a country is consistent with the above theory model is derived.The paper,based on the panel data from 64 countries nearly 10 years,by using the fixed effects model,studies the risk of host country OFDI positive influence to our country.The results show that the host country’s political,economic and legal risks all have an impact on China’s foreign direct investment,foreign direct investment of Chinese enterprises in the various risk does not exist the problem of risk appetite.On the investment motive,the empirical shows that our country enterprise of foreign direct investment has indeed seek,resources,market and technology for motivation.Interactive items in join venture with investment motives,the impact on the investment risk will also be inhibit or promote,this conclusion is consistent with theoretical analysis.Based on our country enterprise in the future to invest in countries along the "area" will be more and more,in this paper,the "area" national data to do the key measurement,and the sample do the empirical analysis,the empirical results and all samples are basically identical.