Analysis On The Effects Of Chinese Outward Foreign Direct Investment To The USA

With the sharp development of our country,Chinese outward foreign direct investment is also increasing especially in the developed countries.Up to 2015,the flow of Chinese outward foreign direct investment has been the second place and increased for 13 years.According to BEA,the flow of Chinese outward foreign direct investment to USA has come up to a heavy growth since the year of 2008.In effect?In 2015,the flow of Chinese outward foreign direct investment to USA is around 15 billion dollars,all of these are the proof that the development of mode of enterprises in our country is transferring from cost-oriented to technology and business environment-oriented.And it's easy and normal for the developed countries which own advanced technology especially for the USA to attract the enterprises in our country,So it's necessary and significant for us to study the effect on the outward foreign direct investment to the USA.My paper will discuss it from three points,which will talk about the background,current situations and characteristics of Chinese outward foreign direct investment to USA.And the paper will make an empirical analysis named principal component analysis in order to do the effect on the outward foreign direct investment to the USA via the EVIEWS.What's more,the paper will do the use of Gravity Model to analyze the effect on the different industries.According to the empirical analysis,I find that the effect on Chinese outward foreign direct investment is environmental institutional factor on the whole.From industrial views,the effect on the industry is related to the characteristics of different industry.The effect on the manufacture-oriented industries is the tax and productivity;that of the industry of non-manufacture-oriented and services is capital GDP.Finally according to the results of empirical analysis the paper will promote some suggestions from macro and industrial views.