A Study On Location Determinants Of China Energy Enterprises’ Outward Foreign Direct Investments

Location selection is an important factor to be considered in enterprises’ Outward Foreign Direct Investments(OFDI).The appropriateness of location selection is directly related to the success or failure of OFDI.In the background of further expansion of the gap between energy supply and demand,it is of great significance studying the location selection of outward foreign direct investment of Chinese energy enterprises.The theories and literature reviews the theories related to location selection of Outward Foreign Direct Investments,mainly including: location selection and The Theory of Motivation Factors Combination,location selection and The Theory of Internalization,location selection and The Theory of National Competitive Advantage.On this basis,the literature of OFDI is collated,mainly including: host country institutional factors,cultural factors and energy-based Outward Foreign Direct Investments.Based on China’s energy investment data from 2005 to 2017,this thesis described the current location distribution of China’s energy enterprises’ OFDI.Regardless of flow or stock,Outward Foreign direct investment in China’s energy enterprises is rapidly developing.The location of energy enterprises’ OFDI is characterized by increasing geographical distribution;Asia,a key investment area,but the proportion of investment in "The Belt and Road"(“B&R”)has gradually decreased.In the empirical analysis,based on energy investment data in 133 countries,this thesis studies the impact of the institutional and cultural factors represented by institutional distance,genetic distance,immigration level,and leaders’ visits on China’s energy-based OFDI.It is found that the greater difference in the genetic and institutional environment of the host country and its own country,the less investment from China’s energy-based;the more frequent the visits of bilateral leaders of the host country and its own country will promote the investment of China’ s energy-based OFDI in such host country;the higher the level of immigration of the host country to China will attract more China’s energy-based OFDI.The above variable factors are indeed important factors affecting China’s energy-based OFDI;Furthermore,Furthermore,based on the advantage analysis,determines the contribution degree of each variable in the regression analysis and it is found that the level of migration level has the greatest impact on the location selection of China’ s energy-based OFDI,andthe contribution degree of bilateral leader visits and institutional distance ranking third and fourth respectively.Their impact on China ’s energy-based OFDI exceeds that of traditional research factors.Finally,based on the above analysis and conclusions,it is judged that Chinese energy-based companies should expand the proportion of investment in the “B&R” countries.