The Study On Location Choice Of China's Direct Investment In The Countries Along The Belt And Road

“One Belt and One Road” is a strategy for opening up to the outside world in the new period proposed by China,which committed to promoting interconnection,building,sharing and cooperation on economy and trade between China and the countries along the Belt and Road.It provides a rare opportunity for Chinese enterprises to “going global” and promoting international capacity cooperation.However,there are still many problems that need to be further deepened for expanding Chinese enterprises' direct investment in countries along the Belt and Road to make the best investment results.In order to realize the orderly flow of international factors and the effective allocation of resources,it is particularly important to investigate the issue of location choice in direct investment by Chinese enterprises in the countries along the Belt and Road.Firstly,this paper elaborates on the basic situation of countries along the route and summarizes the basic status and regional characteristics of China's direct investment in countries along the Belt and Road.Secondly,using the gravitational model,based on panel data of China and 57 countries along the Belt and Road from 2006 to 2015,a full sample regression analysis was conducted using differential GMM and systematic GMM methods to make an empirical analysis of the factors affecting Chinese direct investment along the Belt and Road.Thirdly,the sample countries are classified and systematic GMM methods are used for regression analysis respectively,and compared with the full sample regression results to obtain the basic characteristics of investment in different types of countries.Finally,based on the empirical results of the regression of the full-sample system GMM method,weevaluate China's investment potential towards all countries along the Belt and Road,and analysis the location choice.The study found that:(1)The trend of China's direct investment in countries along the Belt and Road is in good shape and the potential is huge.(2)The amount of investment in the previous period,both the economic volume of the two countries,the acceptance of Chinese products in the host market have a positive effect on investment.The distance between the two countries,and GDP per capita,the rule of law,the political stability in the host country have a negative impact on investment.(3)China has excessive investment in Russia,Mongolia,and other regions,and has not achieved ideal investment in countries such as Central and Eastern Europe and South Asia.Based on the above conclusions,it is finally proposed that China should actively expand investment areas,develop its own economy,strengthen international cultural exchanges and cooperation,and establish a sound investment protection system and other policy recommendations.