International Capacity Cooperation Efficiency,Institutional Distance And OFDI Location Selection Of Chinese Manufacturing Enterprises

The wave of economic globalization has swept the majority of countries and regions involved in the international division of labor,creating an irreversible trend.With the end of the Second World War,the rapid development of foreign direct investment has made its related research more active,thus forming a rich research results.This paper combs the relevant theories of foreign direct investment and summarizes the current situation and existing problems of the location distribution of foreign direct investment of Chinese manufacturing enterprises.First,the DEA data envelopment method is used to measure the efficiency of international capacity cooperation between China and different host countries.Then,using the general regression model to study the impact of international capacity cooperation efficiency on the location choice of China’s manufacturing enterprises for foreign direct investment.Finally,the institutional distance is divided into three dimensions: economic system distance,legal system distance and cultural system distance.The principal component analysis method is used to quantify the variables of each dimension,and the whole sample and sub-sample are grouped to study the system quality and The institutional distance regulates the efficiency of international capacity cooperation and the location choice of foreign direct investment of Chinese manufacturing enterprises.The research results show that the international capacity cooperation efficiency can positively promote the OFDI flow of Chinese manufacturing enterprises,but the institutional distance has no significant effect on the regulation of the two.In the process of group inspection,we find that the system quality is lower than that of the host country of China.For multinational investment,the quality of the system can negatively regulate the relationship between the efficiency of international capacity cooperation and the OFDI flows of Chinese manufacturing enterprises.