Study On The Impact Of Investment Facilitation On China’s OFDI

In recent years,China’s total outward foreign direct investment(ofdi)has maintained a sustained growth trend,rising to 196.15 billion dollars in 2017.China’s direct investment in Asian countries accounted for 69.52%of the total ofdi in that year.With the establishment of the Asian infrastructure investment bank and the proposal of the "One Belt And One Road" policy,China’s direct investment in Asian countries has become a rising concern.Therefore,it is necessary to study the impact of investment facilitation on China’s direct investment in Asian countries.Through literature review and theoretical analysis,it can be seen that the investment facilitation of host country can have an impact on ofdi.This paper uses entropy method and GMM methods to study the impact of investment facilitation level of Asian countries on Chinese direct investment.Firstly,the paper analyzes the current situation of Chinese direct investment in Asian countries.They are the rapid growth of direct investment,concentrated investment regions and highly concentrated industries which direct investment flows to in Asian countries.Secondly,the investment facilitation level assessment system is constructed by applying the method of entropy,and calculate Asian countries investment facilitation.The result shows that the Asian countries have different investment facilitation levels.We can see many countries with high investment facilitation levels concentrate in south-east Asia,but Yemen has a low level of investment facilitation.Most Asian countries have low level of investment facilitation and great room for improvement.Asian countries have obvious differences in investment facilitation levels and prominent non-balance features.Thirdly,sys-GMM method is used to empirically test the dynamic model of OFDI,and the results show that Chinese direct investment in Asia has scale effect.The infrastructure level of the host country has no significant impact on Chinese direct investment in Asian countries.There is a significant positive correlation between the level of information technology application in the host country and Chinese direct investment in Asian countries.So is the level of financial service efficiency.The commercial investment environment of the host country has a negative correlation with Chinese direct investment in Asian countries,and the institutional supply quality of the host country has a negative impact on Chinese direct investment in Asian countries.Finally,the paper puts forward the corresponding policy Suggestions.Policy communication among countries should be enhanced to promote investment facilitation among Asian countries.Continuously increasing OFDI to achieve scale effect.Enterprises are encouraged to conduct investment facilitation surveys before investment to reduce investment risks.Enterprises should strengthen communication and cooperation and continuously increase the scale of ofdi.