Research On The Influencing Factors Of OFDI Location Selection In China

The Belt and Road Initiative marks China into a new stage of foreign investment.As an open and inclusive economic cooperation initiative,China hopes to achieve win-win cooperation among the countries through this initiative.We can see the current state of the policy is to encourage investment in countries along the routes in the next period of time,especially give priority to investment in infrastructure.However,after five years of proposing the Belt and Road Initiative,despite the rapid growth of investment in countries along the routes,there is still a lot of severe risk of foreign investment.Chinese enterprises have some special considerations in the choice of investment location since the countries along the routes are mostly developing countries and have great differences.Therefore,it is urgent to study which factors affect the investment of countries along the routes.This paper adopts panel data of 58 countries of the Belt and Road from 2008 to 2016,by bilateral investment treaty(BIT),bilateral trade volume,geographic distance and characteristics of the host country factors(infrastructure development index of host country,host country income levels,the host country market scale,the population density)to study the OFDI(Outward Foreign Direct Investment)location choice characteristics of countries along the routes.The whole paper consists of six chapters,the first chapter is the introduction,the second chapter is the related theory and literature review.The third,fourth and fifth chapters are the main parts,and the sixth chapter is the summary and research prospect.The specific research contents are as follows:chapter one,introduction,points out the domestic and foreign background,research significance,innovation points and puts forward the research methods of this paper.The second chapter,related theory and literature review.This paper reviews the relevant theories and research progress of foreign direct investment location selection,summarizes the empirical literatures in OFDI research and China's OFDI research on the countries along the routes.Chapter three introduces the present situation of China's foreign direct investment under the Belt and Road.The fourth chapter is based on the empirical analysis of national panel data from the countries along the routes.Chapter five,conclusion and suggestion.The chapter summarizes the full text and puts forward the policy suggestions for Chinese corporations to invest in the countries along the routes according to the empirical results.Chapter six,summary and prospect.Summarize the full text,discuss the shortcomings and future prospects of this article.According to the results of regression,the main conclusions of this paper are as follows:(1)The model has some explanatory power,better goodness of fit for sub sample test,shows that specific analysis of specific problems are necessary when analyzing the OFDI location selection along the routes.(2)No matter in developing countries or in developed countries,bilateral investment treaty with host countries can promote China's investment in the country.(3)China's investment in developed countries takes more consideration of other factors except the geographical distance,such as the rules,the current infrastructure,the infrastructure prospects,the bilateral trade volume and so on.(4)At present,most Chinese enterprises tend to invest in the bigger market of developing countries instead of developed countries,it shows that Chinese enterprises should improve the international competitiveness.(5)Higher population density of developed countries will attract more investment.On the contrary,investment will be inhibited in developing countries.(6)For the enterprise decision maker,the local wage level is more considered when making the investment decision.(7)Bright prospect of infrastructure along the routes will attract more investment.