Research On The Impact Of Cultural Differences On The Two-way Investment Between My Country And RCEP Countries

Regional economic integration has become the main driving force for global economic growth and globalization.In recent years,the anti-globalization has also been highlighted,which has also promoted the development of regional economic more integration.The Regional Comprehensive Partnership(RCEP)was proposed to promote regional development.The main regions and countries covered are China,the 10 ASEAN countries,Australia and New Zealand in Oceania,South Korea,Japan and India.The 16 countries covered by RCEP account for about half of the world’s population,attracting 20%of the world’s foreign direct investment.Culture is an important factor affecting regional economic development,and it also has an objective and dramatic impact on the development of mutual investment in the region.This thesis analyzes the specific impact of cultural differences on investment from the perspective of mutual investment that can analyze the impact of cultural differences in this region on mutual investment more stereoscopically.Corresponding policies and recommendations are proposed that according to the research conclusions to promote the further development of mutual investment in this region.Therefore,studying cultural differences has important theoretical and practical significance for mutual investment between China and RCEP countries.This thesis analyzes the background and future development potential of RCEP and related literature research on the impact of cultural differences on investment.It is found that the influence of cultural differences on investment is divided into three levels: Firstly,it is the impact on the choice of investment area.Secondly,on the foundation of the first condition,it will have an impact on the investment entry mode.Thirdly,it will have a profound impact on the investment performance of the investment.The cultural connotation and the cultural dimension theory of Geert Hofstede are the theoretical basis for the impact of cultural differences on investment.This thesis systematically analyzes the development and existing problems of mutual investment in countries(regions)within the region of RCEP.Finally,on the foundation of cultural differences in the RCEP region,this thesis introduces the number of Confucius Institutes,the Chinese overseas Chinese ratio as a variable,and the cultural dimensions as independent variables.The cultural distance measured by the KS index method is used as the core explanatory variable.Finally the investment gravitation model is constructed.Cultural differences provide an empirical analysis of the impact of mutual investment.It is concluded that cultural differences have a hindrance to the mutual investment between China and other RCEP countries for the analysis of the mutual investment.The number of Confucius Institutes has significantly promoted the mutual investment in China;the ratio of Chinese to overseas Chinese has a significant effect on the promotion of OFDI in China but the impact of FDI is not significant.Therefore,adopting a series of measures such as strengthening cultural exchanges to reduce the negative impact of cultural differences among countries of RCEP on mutual investment is the main task of strengthening mutual investment cooperation in this region.