The Influence Of Overseas Migration Network And Cultural Distance On China’s OFDI

In the process of implementing the "going-out " strategy and " Belt and Road" initiative of Chinese enterprises,the role of overseas migration and culture is very important,and the cultural difference between China and the host country may be an important reason hindering the outbound investment of Chinese enterprises.There is a lack of attention to the informal system of overseas migration networks and cultural differences.Based on migration and cultural perspective,this paper expounds the overseas network,cultural distance influence the theoretical mechanism of the foreign direct investment in China,and based on the 59 countries or regions in the world,22 OECD countries,estimated by different gravity models,examine the migration network and cultural distance on China’s foreign direct investment effect.The research shows that :（1）Overseas immigration networks can help promote China’s foreign direct investment,while cultural distance hinders Chinese companies’ foreign direct investment;（2）where countries from OECD are host countries,the impact of cultural distance on OFDI from China is positive U-shaped non-linear relationship,and the impact utility weakens at a later stage;（3）the overseas migration network and cultural distance variables have a significant impact on OFDI in countries（or regions）along the “Belt and Road”,and the effect has a gradually increasing trend.The conclusion of this paper is helpful to the promotion of Chinese "going-out" strategy and " Belt and Road" initiative,and has reference significance for enterprises to make good use of informal institutional factors such as culture and overseas migration network when making decisions.