The Effect Of Third Country Effect On China's OFDI Location Selection In Countries Along The Belt And Road

The Belt and Road strategy has been proposed for nearly five years.It is an important measure to promote the integration of Chinese companies into economic globalization and realize strategic transformation.The rational distribution of OFDI by enterprises in the region along the route will not only help improve investment returns,export domestic excess production capacity,and accelerate industrial restructuring,but also help deepen economic friendly relations among countries and achieve mutual benefits.However,due to the uneven level of economic development and resource endowment conditions in various countries in the region,China's OFDI distribution in the region has problems such as unbalanced investment structure.Therefore,how to rationally allocate China's OFDI along the Belt and Road is studied.It has very important practical significance.In today ' s complex economic globalization environment,economic exchanges between countries are becoming more and more close.The development of a country is not only an individual behavior,but also affected by the economic environment and policies of neighboring countries.Therefore,multinational companies are conducting When the OFDI' s location is selected,it not only needs to consider the location advantage and economic development level of the host country,but also examine the factors and market potential factors of neighboring countries and regions,that is,the third country.Therefore,based on the spatial perspective,this paper empirically tests the effect of the third country effect on China's OFDI location selection in 40 countries along the Belt and Road by constructing a spatial econometric model.According to the empirical test results,this paper believes that the OFDI of Chinese companies in the region is mainly represented by the export platform type,and is significantly affected by the effect of the third country.The characteristics of the export platform-based OFDI mainly include:When multinational corporations make investment decisions,they will choose a country with a relatively good investment environment as the host country for investment,and use neighboring countries as the target country for the market.This will not only save the cost of trade.And can access the consumer market of third countries.The third country effect mainly manifests itself in two aspects.On the one hand,the increase in market potential of third countries will attract Chinese enterprises to expand OFDI in host countries.This is the complementary effect of third countries;on the other hand,China is selected along the Belt and Road.When the target country invests,the total population,per capita GDP,and natural resource endowments of the third country will significantly affect the investment decision of the company,and it will also have a crowding effect on China's OFDI in the host country.From this we can also see that there is an OFDI in China.Market-oriented and natural resource-oriented investment characteristics.Finally,based on the results of the study,this paper presents several suggestions from the national and corporate levels.