A Study On The Impact Of Investment Facilitation Of BRICS Countries On China's Direct Investment In Other BRICS Countries

With the acceleration of the globalization of the world economy and the acceleration of regional economic integration,the links between the BRICS countries have become increasingly close.For more than a decade,the BRICS economies have developed rapidly,the total volume of trade has steadily increased,and investment cooperation has also shown a good trend.In 2017,the BRICS countries kicked off the next “Golden Decade”.At the 7th BRICS Economic and Trade Ministers' Meeting,the economic and trade ministers of BRICS countries reached a new consensus on investment facilitation and cooperation,Which brings new opportunities for BRICS countries to improve investment facilitation.The internal economic complementarities of the BRICS countries strong,and the economic development strategy and energy strategy are more in line with each other,which are conducive to promoting the economic cooperation process of the BRICS countries.However,BRICS countries also have many problems in investment cooperation.In order to reduce investment barriers and reduce business transaction costs,it is imperative to accelerate the process of investment facilitation.This paper takes investment facilitation as the main line,takes BRICS countries as research objects,combines normative analysis and empirical analysis,and focuses on the level of investment facilitation of the BRICS countries and its impact on China's direct investment.Firstly,the thesis has elaborated the background and the significance of the topic and existing research status at home and abroad.it summarizes the related concepts of investment facilitation,and proposes the relevant theoretical basis about investment facilitation: Transaction Cost Theory,The Theory of Small Scale Technology,The Theory of Motivation Factors Combination and The Eclectic Paradigm of International Production.Secondly,the paper expounds China's investment scale and investment content in the BRICS countries from the perspective of the BRIC countries as a whole and by country.After that,combining with the authority data to construct an investment facilitation evaluation system which is suitable for BRICS countries.This system includes five primary indicators: infrastructure environment,business investment environment,institutional environment,financial environment,technology and innovation environment,and 45 subordinate indicators.Then using the entropy method to calculate the investment facilitation level of the BRICS countries and compare with representative countries of developed economies.Finding the levels of investment facilitation in China and South Africa is higher than other countries,but there is still a lot of room for BRICS countries to make progress,because the level of investment facilitation lags behind developed countries.Thirdly,based on the extended investment gravity model and Grey Relational Analysis,this paper quantitatively analyzes the relationship between the investment facilitation levels of the BRIC countries and the scale of China's direct investment in the BRIC countries.It turns out that improving the investment facilitation of countries along the BRICS countries will help to increase Chinese foreign direct investment.And among five major indicators,the technology and innovation environment have the most positive economic effects.Finally,based on the results of empirical analysis the paper summarizes some conclusions sand proposes effective and reasonable recommendations.