Research On The Location Choices Of China’s OFDI In ASEAN From The Perspective Of Economic Institution

With the rise of global economic integration and regional economic integration,international direct investment has shown a rapid development trend.Since the reform and opening up,China’s economy has been rapid development,economic strength has been improved,following the trend of economic globalization,the Chinese government has implemented the "Go Global" and " the Belt and Road Initiatives" development strategy to encourage competent and qualified enterprises OFDI.In recent years,China’s OFDI has achieved very good results.In 2016,China’s domestic investors made non-financial direct investment to 7961 overseas enterprises,and set foot in 164 countries or regions worldwide,with foreign investment of US $ 170.11 billion,up by 44.1% year-on-year.China has become increasingly rising,and now China has become the world’s second outward foreign direct investment country,means that China’s capital distribution of the new era of the arrival of a global investment market a powerful force.Since the establishment of China-ASEAN Free Trade Area in 2010,it has greatly promoted the economic and trade exchanges between the two sides,providing unlimited opportunities for Chinese enterprises to invest directly in ASEAN and promote China’s OFDI in ASEAN.In 2015,China’s direct investment in ASEAN growth,investment flow for the first time exceeded 10 billion US dollars to reach 14.604 billion US dollars,a record high,up 87%;investment country distribution,investment in Singapore and a new high;investment Continue to expand,the industry throughout the ASEAN countries;investment tends to diversify the main body,more private enterprises to go abroad.In 2016,the 25 th anniversary of the establishment of a dialogue between China and ASEAN,during the "Diamond Ten Years",with the development of the "the Belt and Road Initiatives" development strategy,China’s direct investment in ASEAN is facing unprecedented opportunities.However,in the rapid development of China’s OFDI in ASEAN there are some problems,such as the existence of country differences,uneven distribution of the industry,the overall scale is small and lower overall ratio of China,these issues constrain the further development of investment,waiting to be solved.Based on the panel data of ASEAN countries from 2001 to 2015,this paper uses the fixed effect model to study the impact of ASEAN economic institutions on China’s outward foreign direct investment(OFDI)based on the economic institutions.The empirical results show that the economic institution of the host country has a significant impact on China’s direct investment in ASEAN.The anti-corruption institution,the business institution,the trading institution,the investment institution,the financial institution and the scale of investment in China have a positive impact,indicating that ASEAN countries strict economic rule of law,good business environment,open investment market for multinational production and development provide a good economic institution environment,thus expanding the scale of investment.Government control expenditure institution has a negative impact,indicating that government spending to promote economic growth,to bring investment opportunities to our enterprises;monetary institution is not significant,indicating that the host currency institution is not the main consideration of China’s enterprises in ASEAN countries to invest.At the end of this paper,Hendry’s "general to special" stepwise regression analysis is used to compare the influence degree of each economic institution on the scale of China’s investment in ASEAN.The most influential is the government control expenditure institution,followed by the anti-corruption institution,financial institution,business institution,trade institution,investment institution,monetary institution.Based on the research results,the government proposal and enterprise suggestion of the OFDI of ASEAN enterprises in China are put forward.The former is to build an information service institution for ASEAN investment,strengthen the friendly cooperative relations between China and ASEAN,strengthen and revise the guarantee institution of transnational enterprises,and vigorously support the development and construction of ASEAN Community;The latter is a systematic investigation of the ASEAN economic institution and the market,investment in ASEAN countries and areas to diversify,improve the multinational enterprise institution and management institution,strengthen and ASEAN Chinese businessmen to communicate and cooperate.