A Study On The Influence Of China’s Outward Foreign Direct Investment On Economic Growth Quality Of The Host Country

Since the reform and opening up,with the continuous enhancement of economic strength and international competitiveness,China has continuously accelerated the pace of "going out",and the flow and stock scale of outward foreign direct investment(OFDI)have increased rapidly.The current global governance system is reshaping,profound changes have taken place in the international political and economic environment.Unilateralism with a strong political color is spreading day by day,and trade disputes continue,which has significantly increased the uncertainty of the world economy.In the context of a more complex and volatile international situation,China is still unswervingly expanding the level of OFDI,which has become a booster to enhance the economic vitality of all countries.However,there are doubts about the theories of China threat and resource plunder in western countries,which will undoubtedly weaken the influence of China’s plan on the world economy.Therefore,in view of the interference of the above problems,studying the role of China’s OFDI on the quality of economic growth of the host country will help to establish a positive image for China’s OFDI and provide important support for China to expand the scale of OFDI and the host country to actively introduce investment from China.Based on this,this paper first combs the relevant literature on international direct investment and the quality of economic growth,and then constructs the evaluation system of economic growth quality from five dimensions: the efficiency of economic growth,the stability of economic growth,the optimization of industrial structure,the well-being of people and green development.Using the data from World Bank database,Penn World Table database,World Labor database and UNCTAD database,the entropy method is used to measure the economic growth quality level of 83China’s OFDI host countries located in Asia,Africa,Europe,Latin America,North America and Oceania.Then it makes a theoretical analysis on the characteristics of China’s OFDI and the influence mechanism of OFDI on the quality of economic growth of the host country.Finally,based on the panel data of 83 host countries of China’s OFDI from 2003 to 2014,the paper empirically tests the impact of China’s OFDI on the quality of economic growth of the host country and puts forward policy recommendations.The study found that on the whole,China’s OFDI significantly improved the quality of economic growth of the host country,while the mechanism test showed that capital acquisition effect,technological progress effect,livelihood effect and environmental effect played a key role.After considering the heterogeneity,it is further found that:(1)The promoting effect of China’s OFDI on the quality of economic growth in developing countries is significantly stronger than that in developed countries,and the pulling effect on the quality of economic growth in countries of the "Belt and Road” is significantly stronger than that of "non-Belt and Road " countries.(2)In the regions with large scale of China’s OFDI,OFDI has a stronger effect on the quality of economic growth.(3)The time-segment test shows that the role of China’s OFDI in promoting the quality of economic growth of the host country has been further enhanced since 2008.(4)Among the four investment motives of China’s OFDI: seeking strategic assets,market expansion,seeking efficiency and obtaining natural resources,efficiency-seeking OFDI has the the most obvious impact on the host country’s economic growth quality.