A Study On The Influencing Factors Of Mongolia To Attract FDI Under The "One Belt And One Road"

The proposal of China's "One Belt and One Road"(abbr.OBOR)initiative brings unique historical opportunities to the development of Mongolia.Mongolia has actively connected its "Road of Development" with the "OBOR" initiative.The economic structure of Mongolia with other countries is complementary,with the basic conditions for deep cooperation.FDI into various industries of Mongolia has promoted our country.This paper studies a history and a present situation of FDI in Mongolia,and holds that Mongolia should improve its environment of natural resources,economy,market scale,scientific and technological culture,infrastructure,social services and so on to attract more large-scale FDI from other countries.This paper first introduces the background and significance of China's FDI in Mongolia,in combination with the factors affecting FDI and the investment environment,then introduces FDI in developing countries and literature about FDI in Mongolia,as well as the related theories of FDI,including the Eclectic paradigm,the Production cycle theory and theories of developing economics.Secondly,by establishing principal component analysis model,selecting 19 factors that can represent Mongolian natural resource environment,economic environment,market scale,infrastructure environment and social service through 2000-2016.All factor data has been put in the principal component analysis model and further comparison of investment environment was held between before OBOR period(2000-2012)and after OBOR period(2013-2016).According this empirical research's result before China proposed OBOR in 2013,the factors affecting foreign investment in Mongolia mainly include "export,infrastructure and social services" and "resource environment and market scale".After 2013,it became "resources,environment and market scale","electricity and telecommunication level" and "social service and traffic condition".Hence,it can be seen that the proposal of China's OBOR initiative has affected the factors attracting foreign investment in Mongolia,and it is in urgent need to strengthen the construction of transportation system and increase the power supply and other measures.In addition to strengthen the government guidance and support,there are given reasonable advices like expand direct investment fields,improve the political and economic environment,improve the infrastructure construction,establishing and perfecting the laws and regulations,negotiate more free trade agreement,optimize investment industry structure,increasing the government macroeconomic regulation and control,strengthening the training and assignment services for multinational management personnel training,improve reputation of goods and other issues.