Research On The Impact Of Political Risk On China's International Construction Investmen

Since the implementation of the "going global" and "the Belt and Road"initiative,China’s foreign direct investment flows and stocks have increased year by year.In 2020,China’s foreign direct investment flows reached US $153.71 billion,ranking first in the world,and ranking third in the world for eight consecutive years.China’s international construction investment industry is also actively going out to carry out the global value chain layout.The proportion of foreign direct investment in the total amount of foreign investment in manufacturing industry is also rising,from 7.0%in 2015 to 8.8%in 2019.At present,the global situation is generally stable,but local conflicts still occur,especially in Africa and Central and Western Asia,which has great political risks,which will have a certain impact on FDI in China’s international construction investment industry.Therefore,this thesis analyzes the political risks in the field of China’s international construction investment through theoretical analysis,empirical analysis and case analysis.This thesis systematically combs the main political risks in China’s construction investment industry from a macro perspective,and discusses the relationship between the two,providing an important reference for the decision-making of construction investment companies in China’s construction investment industry.The thesis first discusses the mechanism of policy risk in China’s international construction investment industry in theory,and then establishes a panel data model by establishing an empirical analysis model.Considering that China’s international construction investment has certain spatial spillovers,this thesis establishes a spatial model to further analyze the impact of political risk on China’s international construction investment.According to the infectivity of the economic nature,this thesis analyzes the spatial spillover effect of China’s international construction investment by establishing a spatial model.Through the spatial Dubin model,the regression effect is significant,which indirectly shows that some influencing factors of China’s international construction investment have significant spatial spillover effect.The results show that political risk can significantly affect the spatial spillover effect of China’s international construction investment.