Research On Chinese Enterprises’ Entry Mode Of OFDI In "Belt And Road" Countries

In the past six years,the "Belt and Road" initiative has made a series of fruitful achievements,with steady progress in key infrastructure cooperation,more smooth trade contacts,and fruitful results in multilateral cooperation.Cross border direct investment is a core area in China’s economic cooperation with the "Belt and Road"countries.From 2013 to 2018,China’s foreign investment in the "Belt and Road"countries amounted to nearly $1 00 billion,and the investment industry was increasingly diversified.In the future,China’s direct investment in the "Belt and Road" countries will continue to increase and the prospects for cooperation will be broader.However,due to lack of experience,some enterprises blindly enter the international market,which results in investment failure.In the wave of direct investment in the "Belt and Road"countries,how to choose the right entry mode is particularly important,and even determines the success or failure of the international operation of the enterprise.Firstly,this paper explains the background from the global and China’s current situation,puts forward the theoretical and practical significance of the research,and summarizes the research results of domestic and foreign scholars in relevant fields on the basis of reading a large number of literature.This paper simplifies the OFDI entry modes into Cross-border M&A and greenfield investment and analyzes the relevant factors that affect the entry mode of companies to the "Belt and Road" countries.Taking 2009-2018 years’ domestic listed companies as a sample database for Cross-border M&A and greenfield investment events,1425 cases were selected as samples for empirical analysis,using dual logit and dual probit models to analysis 9 indicators from enterprise level and national level.By comparing the differences of different entry modes,the conclusion is:large-scale enterprises tend to choose Cross-border M&A,high-tech and internationally experienced enterprises tend to choose greenfield investment.At the national level,in countries with small cultural differences and perfect infrastructure.Chinese enterprises tend to choose greenfield investment,and in countries with high degree of economic liberalization and good governance,enterprises tend to choose Cross-border M&A.In addition,the profitability of enterprises and the level of economic development of host countries do not significantly affect the choice of entry mode of Chinese enterprises.Combined with the results of empirical analysis,aiming at the existing problems,the article finally gives suggestions on the direct investment of Chinese enterprises in the "Belt and Road" countries from the perspective of government and enterprises,so as to provide some advice for enterprises to make decisions.