Research On China's Outward Foreign Direct Investment Efficiency To G20

In 2015,China's OFDI was ranked second in the world for the first time,but it is still relatively low compared with the status of the world's second economy place.This paper selects the G20 as the research object that contains the world's major economies,researches the OFDI efficiency of China,and analyzes the causes of the efficiency loss in depth.First,based on the knowledge capital(KK)model,and introduced stochastic frontier analysis,then put institutions of the host country,cultural differences and exchange rate volatility into the model.Then,I selected the OFDI stock data of G20 member countries from 2003 to 2015 for empirical analysis.Finally,for further study,the G20 member countries are divided into developed and developing countries respectively,then measures the OFDI efficiency and carries out comparative analysis respectively.The following conclusions are drawn from this paper:(1)China's OFDI efficiency is relatively low,overall at the level of 0.4,there is still a large room to improve,and the overall efficiency of OFDI in developing countries is higher than that of developed countries.(2)The influence factors of OFDI efficiency present a different role in different types of countries,the favorable system environment does not necessarily improve efficiency of OFDI,cultural differences promote the efficiency of OFDI in the G20'developed countries,but has inhibitory effect to the developing countries and the overall sample,and the trade cost of home country led a negative effect on China's OFDI in G20'developing countries.(3)The KK model has certain applicability to the analysis of China's OFDI,but it also has particularity,and the difference of market scale in China is characterized by preference,and skilled workers endowment difference hinders China's direct investment to developing countries.(4)China's foreign direct investment to the developed countries of the G20 is both horizontal and vertical,while more horizontal investment characteristics are presented to developing countries.(5)The efficiency of OFDI has distinct national differences,OFDI in Australia,Britain,the United States,Russia and South Africa's is leading,the efficiency in Argentina,Brazil,India,Indonesia,Mexico and Saudi Arabia is high,but low in Canada,and the OFDI in France,Germany,Italy,Japan,South Korea and Turkey investment lag behind.Finally,this paper puts forward the following policy suggestions based on the conclusion.Firstly,strengthening education and labor skill training to improve our labor quality.Secondly,utilizing foreign advantageous resources,and implement differentiated foreign investment strategy.Thirdly,strengthening cooperation between countries and regions to realize common development of trade and investment.Fourthly,strengthening communication and compatibility with institutional environment among various countries to enhance the risk prevention ability.Lastly,strengthening cultural exchanges with other countries and promote cultural integration.