Since the reform and opening up,China’s economy has embarked on a new journey.Especially after successfully joining the WTO,our foreign-oriented economy has entered the fast track of development.However,since the financial crisis,the domestic and international situation facing China has become increasingly severe,and economic development has entered a "four-phase superimposed" stage,with potential risks constantly highlighted.Against this background and reality,proposal of the “Belt and Road” initiative in 2013,release of the “Vision and Action for Building a Silk Road Together” in 2015,and the second “Belt and Road” forum for international cooperation held in 2019,fully it proves that China’s foreign economic and trade and investment cooperation has reached a brand new height,drawing a blueprint and indicating the direction for China to cope with the complex and changing international situation.Since the launch of the “Belt and Road” initiative,China’s exchanges and cooperation with host countries have become increasingly close.The host country’s financial development has become an important factor affecting China’s foreign direct investment.Enlarging the scale of financial development,optimize development structure and improve development efficiency can effectively promote China’s foreign direct investment in host countries along the route to a higher level.Based on the perspective of the host country’s financial development,using “Belt and Road” 61 countries,2003-2018 years’ panel data to build an index system,and entropy method to evaluate the financial development level of host country,and uses a dynamic panel system GMM model to study the financial development of Impact of China’s OFDI.The following conclusions are drawn from the study: First of all,China’s outward FDI is a long-term international business activity,The stock of OFDI in thecurrent year is affected by the previous year.Looking at the overall trend,although China’s foreign direct investment in host countries has declined due to the impact of weak global economic growth,the overall trend of fluctuations has increased;Secondly,the potential of the host country’s financial development level is huge.Especially after the “Belt and Road” initiative was proposed,the host country’s financial development status has a significant positive impact on China’s OFDI.The expansion of the financial development scale and the optimization of the financial development structure will stimulate China’s foreign direct investment.Although the impact of the efficiency of financial development is not significant,as the level of economic development of the host country increases,the advancement of scientific research and innovation capabilities,the continuous diversification of financial instruments,the efficiency of financial development will become a new round of innovative power for host countries to attract foreign investment;Thirdly,China’s overseas investment has a strong location-driven role.Location factors such as bilateral trade links,host country natural resource endowments,and urbanization cluster effects all have a positive effect on OFDI,common guarantee the realization of the vision of "policy communication,smooth trade,financing,facility connection,and people to people connection".Finally,it provides research inspirations and suggestions for the continuous development of the role of the financial development of the “Belt and Road” host countries to China’s OFDI. |