Research On The Influencing Factors Of China's OFDI In Pakistan Under The Background Of The "Belt And Road Initiative"

In September and October 2013,the Chinese government successively put forward the strategic concept of building the "Silk Road Economic Belt" and "21st Century Maritime Silk Road",aiming to enhance understanding of trust with countries along the route,strengthen all-round exchanges,and promote common development.Achieve common prosperity.The "One Belt and One Road" initiative is an important measure for expanding the all-round opening up of relevant countries under the new situation,marking China's entry into a new era of actively guiding global economic cooperation and promoting changes in global economic governance.At the same time,South Asia is located where the "One Belt and One Road" crosses the sea and land;and Pakistan and China are the only all-weather strategic partners in the world's bilateral relations.The friendship between the two sides has been forever stronger;more importantly,it is strategically important.Near the Persian Gulf,near the Hormuz Strait,the main channel for global oil supply,can effectively resolve the "Malacca Dilemma" of Gwadar in China's maritime transport and hand over 40 years of operation rights to Chinese enterprise on February 18,2013.As a result,the China-Pakistan Economic Corridor,a major project of the "One Belt and One Road" initiative,came into being.So far,China has made substantive progress in the construction of Gwadar Port,transportation infrastructure,and energy cooperation.The cooperation between China and Pakistan in the economic field will play a demonstration role for China in building a community of destiny with neighboring countries along the Belt and Road.Outward direct investment(OFDI)is often the most important part of economic cooperation between the two countries,and it is also the main implementation approach of the "One Belt and One Road" initiative.This paper empirically analyzes that China has a strong preference for Pakistan during the OFDI process in developing countries around the Belt and Road Initiative.However,with the implementation of the "Belt and Road Initiative," China's OFDI countries along the "One Belt and One Road" countries have overtaken China's periphery.The OFDI in developing countries(like Pakistan)has a significant effect;while in the OFDI process in Pakistan,the host country's market size,resource endowments,the closeness of trade between the two countries and the "Belt and Road Initiative" variables all contribute to it,but resources Endowments and initiatives have no significant effect;host government efficiency and infrastructure variables significantly hamper China's OFDI in Pakistan.In order to ensure the long-term sustainability of China's OFDI in Pakistan and the steady advancement of the "Belt and Road" initiative in countries along the route,the following policy recommendations are proposed:Scholars should repair theories related to OFDI in China;leaders of the two countries need to strengthen dialogue to jointly safeguard the host country's political environment Stabilization;Strengthen the popularization and promotion of the "Belt and Road Initiative".The government and corresponding agencies need to build a host country investment information database.We will improve state-owned enterprises' behavior in BAFD,achieve win-win cooperation,and avoid malicious competition;enhance risk awareness and ensure completion of investment projects.SMEs need to enhance their core competitiveness,conform to the trend of the times,identify their positioning,give full play to their advantages,and accelerate the pace of "going out".