The Digitalization Of Host Country And The Location Selection Of China's OFDI

Digitalization takes data as the new key production factors,based on the application of information technology and Internet platforms,and the integration of digital economy with other fields as the main manifestation.Global digitalization is imbalanced with large development gaps among countries.It is worth noting that digitization has a profound impact on international capital flows and the decision-making of enterprises' overseas investment locations.Studying the relationship between digitalization and OFDI location selection is conducive to expanding the research content,and has guiding significance for the rational layout of overseas investment by enterprises and China's digital economy construction.Based on the literature on digitalization and OFDI location selection,this paper clarifies the theoretical mechanism of how digitalization affects location selection,including corporate heterogeneity adjustment adjustment factors.This article uses the outward investment events of Chinese listed companies as a research sample.By constructing a benchmark regression model and an extended regression model,it empirically tests the relationship between digitalization and OFDI location selection,as well as the impact of enterprise heterogeneity.Two representative companies,ZTE and TCL,are selected to conduct case study.The research results show that digitalization has a positive impact on enterprises' OFDI location selection.As the level of digitalization in a country is higher,companies are more willing to invest there.Enterprise heterogeneity has a moderating effect on it.To be specific,the state-owned nature weakens the effect of digitalization on OFDI location selection to a certain extent,and the digital relevance of the industry enhances the effect of digitalization.The case analysis results show that the impact of digitalization on OFDI location selection is realized through the effects of market expansion,efficiency improvement and technology upgrade.According to the above results,this article puts forward corresponding policy recommendations.