Research On OFDI Decision-making And Location Selection In China's Pharmaceutical Manufacturing Industry

Forty years since the reform and opening up,China's outward foreign direct investment(OFDI)has developed rapidly.With the deepening of international engineering,OFDI has gradually become an important indicator of a country's overall national strength and global discourse power.With the development of the "Belt and Road Initiative,"China's OFDI abroad will surely usher in greater opportunities for development.More and more companies have chosen the "go global" strategy to seek a bigger international market.At present,research on OFDI in China's foreign direct investment mostly stays at the macro level,and there is little research on microeconomic entities.Even the research on OFDI of a foreign direct investment in a certain industry is the overall study of the industry.However,within the same industry,there are also heterogeneities among companies.Theoretical and empirical evidence shows that heterogeneity does have an impact on OFDI decisions and location choices of foreign direct investment.Therefore,based on the theory of international investment,the dissertation studies OFDI decision-making and location selection of foreign direct investment in China's pharmaceutical manufacturing industry based on the perspective of heterogeneity.The paper first sorts out related domestic and foreign literature of OFDI for foreign direct investment,and seeks theoretical sources for this article,which lays a theoretical foundation for the following development.This chapter outlines the basic situation and location choice of OFDI in foreign direct investment,and elaborates the characteristics of DFDI in foreign direct investment from three aspects:productivity,nature of business,and capital intensity.It provides a realistic basis for the study of foreign direct investment OFDI from the heterogeneity of China's microeconomic entities.Secondly,the theoretical derivation and empirical test of the relationship between heterogeneity and the decision of OFDI for foreign direct investment(OFDI)were carried out.Based on the theoretical model HMY model,it was extended to theoretically establish the threshold for OFDI for foreign direct investment of enterprises.Deductions were made.Based on the theoretical research,the paper adopts the data of China's pharmaceutical manufacturing A-share listed companies and uses the logit model to conduct empirical tests.The results show that TFP,corporate nature,and capital intensity all affect the OFDI behavior of enterprises'direct foreign investment..Based on the study of corporate OFDI decision-making,the paper studied the choice of OFDI location of enterprises based on Melitz et al's heterogeneous strategy model,including the host country's GDP and the distance to the host country.Finally,the dissertation puts forward policy recommendations for China's pharmaceutical manufacturing industry to carry out direct foreign investment OFDI.