China’s Export Trade Effect Of OFDI In Africa

Investment and export trade are two main channels for China to implement the "going out" strategy.It is of great theoretical and practical significance to study the relationship between investment and trade and achieve a balanced development of these two channels.Africa is an important direction and foothold of the Belt and Road Initiative.Therefore,this paper combines the export trade effect of OFDI with "The Belt and Road" initiative to study China’s export trade effect of OFDI in Africa.In addition,the institution of host countries has become crucial factors that affect overseas trade and investment,and become important economic indicators studies by scholars at home and abroad.Therefore,this paper introduces the host country’s institutional factor,aiming to analyze the moderating effect of the host counter’s institutional environment in the process of export trade effect of OFDI.The author selects the data of China’s investment and export trade in 42 countries in Africa from 2013-2018.Basing on unit-root test,co-integration test,multicollinearity test and endogenous test to ensure the feasibility of the model by STATA,the author uses panel data to study the export trade effect of China’s OFDI in countries in Africa.The result show that whether introducing control variables,whether introducing host countries’ system factors or the interaction between OFDI and institutional factors,China’s exports to these countries.Secondly,whether the overall institutional index of the host country or the six sub-indicators: Political Stability and Absence of Violence,Government Effectiveness,Regulatory Quality,Rule of Law,control of corruption,Voice and Accountability are affecting China’s exports to these countries.The result is different,it shows that China is more inclined to cooperate with countries with good institutional environment in Africa.That is to say,the institutional environment of the countries in Africa plays a negative moderating effect on the export trade effect of China’s OFDI.The paper puts forward the feasible suggestions for the balanced development of investment and export trade from the government,enterprises and other levels basing on the analysis of the empirical results.