| "Belt and Road"(B&R)is the abbreviation of "Silk Road Economic Belt" and "21st Century Maritime Silk Road".It is the construction of "new silk" proposed by President Xi Jinping in September and October 2013.The road economic belt and the "21st Century Maritime Silk Road" cooperation initiative.It will make full use of the existing dual multilateral mechanisms of China and related countries to play the role of an existing and effective regional cooperation platform.The purpose of the Belt and Road Initiative is to use the historical symbol of the ancient Silk Road,hold high the banner of peaceful development,continuously enhance economic partnership with countries along the line,and cooperate to create a community of interests,a community of destiny and responsibility for political mutual trust,economic integration,cultural inclusion.community.Nowadays,the world is constantly changing.The deep-seated impact of the international financial crisis still exists.The world economy is gradually recovering and developing more and more diversified.The international investment and trade pattern and the rules of multilateral investment and trade are brewing and profoundly adjusted.The development problems encountered by countries are still grim.With the introduction of the“Belt and Road”initiative,China’s foreign investment has made considerable progress and its investment scale has been innovating repeatedly.However,in view of the fact that the investment scale of the countries along the "Belt and Road" has increased little or even declined,the reasons for this decline and how to properly choose the host country to invest have become the focus of this paper.This paper innovatively puts forward the hypothesis that the quality of the host country’s institution has a U-shaped effect on China’s OFDI.We also innovatively use BITs as moderator variables to study whether they can moderate the impact of the host country’s institutional environment on China’s OFDI.In view of the fact that many countries along the“Belt and Road”initiative are mostly developing countries and poor countries,the comparative study of non line(developed countries)data is added to make the conclusion more convincing.This paper constructs a theoretical model of the relationship between China’s outward direct investment(OFDI)and the quality of the host country’s institution and bilateral investment treaties(BIT)through the intercept fixed effect model.China’s OFDI sample data of 50 countries along the belt and 20 non line(developed)countries were selected for2012-2016 years’ empirical analysis.The research shows that the influence of host country institution quality on China’s OFDI is indeed inverted U curve.The influence of host country institution quality on China’s outward direct investment between the countries along the belt and the non line countries has obvious differences;the moderating effect of bilateral investment treaty on the influence of host country’s institutional quality on China’s OFDI is obviously different between countries along the “Belt and Road” andnon-countries along the road.Based on the above conclusions,it is suggested that Chinese enterprises should invest in host countries in the light of the quality of the political institution in order to maximize their revenue when investing in the countries along the“Belt and Road”.At the same time,when bilateral investment treaties are signed,China should conclude a higher standard bilateral investment treaties,and also pay attention to the high level protection of its foreign investors in the host country.China needs to find the best balance between the two. |
