The Influence Of The Establishment Of Confucius Institutes On OFDI Of Chinese Enterprises

The “Belt and Road” construction has been steadily progressing in the direction of harmony,commonality,and win-win cooperation since its achievements in 2013.However,due to the complex and ever-changing international geopolitical situation and the increasing number of partners,cultural differences between different countries and China have gradually become a strong obstacle to economic and trade cooperation.As a nation with openness as the gene of civilization,China promotes Chinese culture through Confucius Institutes established overseas,which plays a key role in enhancing the similarity of each other’s language and culture.At present,there are a large amount of study results of academicians at home and overseas on the OFDI between China and the countries along the “Belt and Road”,however,there are still few literatures on the relationship between Confucius Institutes and Confucius Institutes.For this reason,for the sake of the influencing factors and mechanism,this paper selects the establishment of Confucius Institutes in China’s “Belt and Road” countries as the research object,and collects relevant data from 64 countries from 2005 to 2019.The investment gravity model,and the average value of cultural distance and geographic distance are used to distinguish the samples,and empirically explore the relationship between the establishment of Confucius Institutes and the OFDI of Chinese enterprises in the "Belt and Road"countries,and the eventual summing-up shows that:(1)The development of "Confucius Institutes have played a momentous character in elevating OFDI under the Belt and Road Initiative.(2)The ability of Confucius Institutes to promote China’s OFDI towards the “Belt and Road” principally count on the distance from the position and cultural distance between China and the host country.The two element will significantly reduce the attractiveness of OFDI to the host country,which will seriously restrict the China’s OFDI process for "One Belt,One Road" countries.(3)With the increase of cultural distance,the establishment of Confucius Institutes can reduce the inhibitory effect of cultural distance on China’s OFDI.Therefore,in the“cultural proximity country” and “geographically adjacent country”,the closer the cultural distance is to the mean value is selected.The country establishes a Confucius Institute,the easier it is to play its role in promoting OFDI.Therefore,in the sight of the aforementioned summing-up,this paper propose the following recommendations: It is necessary to improve the pertinence and effectiveness of geographical selection in international cooperation,and adopt the measures for countries with geographical proximity and cultural distances close to the average such as Pakistan and Thailand.Focus on exchanges and cooperation measures,and actively maintain the deep national friendship established by each other;at the enterprise level,it is more necessary to carefully consider the location choice of foreign investment,the degree of cultural differences,etc.,and then selectively enter the "Belt and Road" market.