Enterprise OFDI Model Selection Based On The New New Trade Theory

In recent years,more and more enterprises have invested abroad,and foreign investment has become an important measure for enterprises to go abroad.Foreign direct investment(OFDI)plays an important role in promoting China's economic growth,and its speed of development is also increasing.Previous international theories on foreign investment mostly explained the reasons of our country's OFDI and the factors affecting our country's foreign investment from the macro level,and they have a common premise that enterprises are homogeneous,that is to say,under their research,enterprises are the same,ignoring the existence of enterprises themselves.The internal nature.In recent years,the research on international investment is more from the perspective of the internality of enterprises,which proves that enterprises have heterogeneity,that is,there are differences in productivity,scale,human capital,ownership and so on.Moreover,the research also shows that the heterogeneous choice of business is closely related.Therefore,on the basis of the new trade theory and the heterogeneous enterprise selection theory model,this paper further explores the impact of enterprise heterogeneity on the enterprise's OFDI and its selection methods by linking the three directions of enterprise productivity,export and OFDI.Firstly,this paper reviews the relevant literature of international investment theory,combs and analyses the relevant theories,and provides the theoretical basis for the study of this paper.It also combs and summarizes the research on the relationship between foreign investment and productivity at home and abroad.Its research is mainly based on the productivity of enterprises directly.It does not see from many dimensions what factors affect foreign investment besides productivity,and it also does not analyze what enterprises will choose after choosing foreign investment.Choose which type of investment mode,so this paper studies from this aspect,providing a basis for empirical research.Secondly,through the analysis of the current situation of China's foreign investment,this paper elaborates on the flow and stock of foreign investment,the wide field of foreign investment mergers and acquisitions,the wide field of foreign investment and the location distribution of foreign investment,which provides a realistic basis for this study.Thirdly,according to the heterogeneity of enterprises,this paper uses the new trade theory as the theoretical framework to explore the relationship between the heterogeneity of enterprises and foreign investment.The main discussion is about the differences in productivity.The relationship between enterprises' outward investment and productivity,what other factors affect outward investment and the hypothesis of this paper are put forward.Then,according to the hypothesis,the binary selection model is proposed,and the data processing and the selection of model variables are explained,and the empirical correlation test is carried out.On the basis of verifying that the higher the productivity of enterprises,the more foreign investment they will make,this paper further analyses whether enterprises choose to invest in business or trade when they invest abroad.Finally,according to the empirical results,the enterprises with low productivity will not invest in foreign direct investment.The enterprises with higher productivity will choose Operational investment,total assets,main business cost and higher operating expenses the enterprises will choose Trade-oriented when they do OFDI.Through the research of this paper,we can give some reference opinions for Chinese enterprises,especially Zhejiang enterprises,in developing overseas investment.Enterprises should choose whether to invest abroad according to their own productivity.At the same time,the government should implement corresponding policies to encourage and help qualified enterprises to OFDI,because OFDI can make enterprises develop better.