Host Country System Quality Difference To Our OFDI Study On The Impact Of Export Trade Flow

Since China's accession to THE WTO,China's foreign trade has developed rapidly.In recent years,trade friction tends to intensify,which has become a restrictive factor of China's foreign trade.The trade frictions China faces are caused by many factors,but in general,trade frictions with developed countries are still the main friction,and trade surplus is still an important reason for trade frictions with developed countries.Moreover,with the effective implementation of China's policy of reform and opening up and the strategy of encouraging enterprises to "go global",OFDI(Foreign direct investment)has developed rapidly and become the developing country with the largest capital export,and the trend of capital flow has gradually changed from a net capital importer to a net capital exporter.In fact,in the implementation of the "going out" strategy,the OFDI location investment choice of enterprises should not only consider the trade balance from the macro perspective,but also pay attention to the investment benefit from the micro perspective.How to invest in specific countries can not only reduce export trade and reduce China's foreign trade friction,but also ensure the maximization of investment benefits,which is the best choice for China's OFDI enterprises.This paper summarizes the theoretical mechanism by which the institutional quality of the host country influences the OFDI of the homecountry and then the export trade.Combined with empirical analysis,this paper conducts empirical analysis with the panel data of 119 host countries from 2003 to 2018.The study found that China's OFDI would promote exports.When the host country system quality factor is introduced,it is found that the host country system quality will weaken the promotion effect of OFDI on exports.Finally,based on the research conclusions,this paper proposes several OFDI optimization schemes in order to enable Chinese enterprises to "go global" better and obtain greater investment benefits.This paper first introduces the background,purpose and significance of the topic,then elaborates the main content of the paper,lists the framework of the paper,and summarizes the relevant literature review.Then the mechanism of the change of export trade volume through OFDI of home country is analyzed.Including the influence mechanism of host country's system quality on home country's OFDI,the influence mechanism of home country's OFDI on export trade,and the influence mechanism of host country's system quality difference on the change of export trade flow through home country's OFDI.Then the development status of OFDI and export trade in China is introduced.After empirical analysis,it was found that China's OFDI had a promotion effect on export trade.When the quality factor of host country system was introduced,it was found that the quality of host country system would weaken thepromotion effect of OFDI on export,and the robustness test was conducted.Finally,a conclusion is drawn and policy Suggestions are put forward to optimize the allocation of China's OFDI and carry out multilateral and bilateral cooperation mechanisms with developing countries.