Research On The Influence Of Host Country's Business Environment On China's OFDI Location Selection

Since the strategy of "going global" was put forward,enterprises have followed the development of globalization and actively carried out outward direct investment activities.Since 2010,the outward direct investment of Chinese enterprises has shown a steady growth trend.By the end of 2018,China's OFDI traffic was the second highest in the world,second only to Japan's.The stock of investment is third only to the us and the Netherlands.China's foreign direct investment(odi)has grown rapidly,transforming from a major country attracting foreign investment to a major country of odi.In the process of integrating into the international economic market,Chinese enterprises also have many problems in OFDI,such as low efficiency and many loss-making enterprises.When enterprises make fdi,they will be influenced by the host country's economic scale,bilateral trade volume,institutional distance,cultural distance,natural resource endowment and other factors.In recent years,it has become a consensus for enterprises to pay high attention to the business environment of host countries.Therefore,in order to minimize the risks and challenges brought by the uncertainty,enterprises will pay special attention to the business environment in the host country.The business environment can reflect the comprehensive level of a country's political environment,economic environment and social environment,which has become an important assessment content for OFDI enterprises in their location selection.In literature review,it is found that there is a lack of research on the correlation between the business environment of the host country and the location choice of OFDI of Chinese enterprises.Most previous studies are based on special analysis of the institutional environment and economic environment in the business environment,while ignoring the different impacts of various sub-indicators in the business environment.Differ as a result the productivity of enterprise itself,which will produce different investment motives,doing business of host countries,and thus the heterogeneity of preference,which means an empirical analysis of the business environment of the system for the host country,the influence factors of refining business environment,the integration of different influence factors on the OFDI the influence degree of the enterprise,to help enterprises under different motives,when undertaking foreign direct investment can make the correct location choice.Due to different investment motives,enterprises have a heterogeneous preference for ofdi,so different requirements are put forward for the business environment of host countries when making OFDI.The world bank subdivides the business environment into ten sub-indicators.Based on the analysis of data integrity and the necessity of indicators,this paper selects six indicators,and then empirically studies the impact of the host country's business environment on China's OFDI by means of quantitative analysis.Based on the empirical analysis of OFDI panel data of 84 countries in China from 2004 to 2018,this paper analyzes three motivations of China's OFDI,namely market-seeking OFDI enterprises,resource-seeking OFDI enterprises and strategy-seeking OFDI enterprises.After investigating the overall situation of the business environment in the host country,subdivision indicators were analyzed to determine how different OFDI location would be for enterprises with different investment motivations.The results showed that different OFDI models have heterogeneous preferences for the subcategory indicators of business environment:(1)business environment better host will attract enterprises OFDI location;(2)OFDI of different investment model enterprises will have different site selection preference.Market-oriented enterprises tend to choose national investment sites with better business environment;Resource-oriented enterprises tend to choose the country with poor business environment for investment,while strategy-oriented enterprises tend to choose the country with better business environment for investment.(3)market-seeking OFDI will pay more attention to the convenience of starting a business,paying taxes and executing contracts;Resource-seeking OFDI pays more attention to the ease of handling construction permits,enforcing contracts and protecting minority investors in the business environment of the host country.OFDI focuses more on the ease of starting a business,the ease of obtaining credit and the ease of executing contracts.After theoretical analysis and empirical analysis,the author summarizes the analysis results and puts forward opinions and Suggestions from the two aspects of enterprises and government.