Research On Strategy Selection Of China's Manufacturing OFDI In Countries Along The "Belt And Road"

The scale of China's manufacturing outward foreign direct investment(OFDI)has been continuously enlarging since 2013.And manufacturing became one of the industries of China whose OFDI stock was over 100 billion US dollars in 2016 for the first time.Under the background of carrying out the "Belt and Road" initiative,China's manufacturing made full use of relative resources and boosted economic growth of the countries along the "Belt and Road".Due to large differences among the countries along the "Belt and Road",appropriate OFDI strategies will help to guide China's manufacturing to make OFDI in countries along the "Belt and Road"properly.Based on the analysis of the facts of China's manufacturing OFDI in countries along the "Belt and Road",we did a research on strategy selection of China's manufacturing OFDI in countries along the "Belt and Road" from three aspects:industry selection,location selection and investment method selection.As for the study of the industry selection,we adopted the method of revealed comparative advantage index to measure China's manufacturing sub-sectors' revealed comparative advantage index,we found that China's manufacturing did not fully follow OFDI industry selecting standards to invest in the countries along the "Belt and Road".As for the study of the location selection,we used the factor analysis method.By constructing a location evaluation model and index system for evaluating location advantage of these countries along the "Belt and Road",we calculated these countries'marks,and found that the institution and natural resources of the host country are important influencing factors on the location selection of China's manufacturing OFDI in countries along the "Belt and Road".As for the study of the investment method selection,we used the binary logistic regression model,and selected factors from two aspects:the host country and the enterprise itself.We found that the scale of host country's market,the institutional differences with China and the industry belonging to capital-intensive or technology-intensive improved the probability of choosing M&A,while the host country's labor costs and market's potential improved the probability of choosing greenfield.According to the empirical results,we put forward the following suggestions on strategy selection of China's manufacturing OFDI in countries along the "Belt and Road".In terms of industry selection,industries such as textiles are preferred.In terms of location selection,Singapore,Qatar and Czech Republic are preferred.In terms of investment method selection,government should pay more attention to these factors,such as the kinds of OFDI industries,the size of the host country's market,the market's potential of the host country,and the institutional differences between the host country and China.