A Study On The Impact Of Business Environment On Chinese Enterprises OFDI

With the steady advancement of globalization process,the world economy has deeply integrated,and the international investment activity develops fast.In response to the trend of globalization,China behaves actively.In recent years,under the strategy of "going out",China has been actively promoting the "one belt one road" construction and continually carried out the cooperation of international capacity.As a result,the scale of Chinese outward direct investment has increased rapidly.Up till now,China has been converted from net capital importers to net capital exporters.The rapid increase of Chinese outward direct investment has aroused the attention of the countries from the world.But the investment efficiency of Chinese enterprises' OFDI is not satisfactory,lots of them suffer a loss.Which is also aroused the attention of many scholars' study.By referring to foreign and domestic literature,I find there is very few literature analyses the relationship between OFDI and host country's business environment.Business environment is a very important factor that affects enterprise's development,it can mirror the comprehensive level of a country's political,economic and social environment.So business environment has a lot to do with enterprise's OFDI performance.Based on the perspective of investment motivations,this paper analyses how business environment affect Chinese enterprises' OFDI under different investment motivations.The business environment index this paper uses is from the country development index that the World Bank released.At first,we analyse the impact of host countries' business environment regulation,macroeconomic management,rule-based governance,social protection and trade environment have on Chinese enterprise OFDI.Using panel data of OFDI flow from 84 countries from 2005 to 2015 to do the empirical analysis.The result shows that host country's business environment regulation and rule-based governance negatively correlate with Chinese enterprise OFDI,social protection and trade environment positively correlate with Chinese enterprise OFDI,host country's macroeconomic management doesn't robustly affect Chinese enterprise OFDI.And then base on the three motivations of Chinese enterprise OFDI,i.e.market-seeking,resource-seeking and technology-seeking.dividing host countries on the market scale,natural resource endowment and technology level,By interacting business environment and investment motivations,we analyse how the businessenvironment affects Chinese enterprise OFDI under different motivations.The result shows that the business environment that Chinese enterprise OFDI demands is different when under different investment motivations.Enterprises seeking for market and technology tend to invest in countries with good business environment,while enterprises seeking for natural resources tend to invest in countries with bad business environment.Finally,based on the conclusions of the empirical analysis,we put forward some policy suggestions from the perspectives of the government and enterprise.