Analysis Of The Impact Of Internet Development Level In ASEAN Countries On China’s OFDI Efficiency

In recent years,China has attached great importance to the development of Internet technology in top-level design,aiming to use the advantages of the Internet to improve the traditional economic model,grasp the development opportunities of informatization,networking and intelligence,and provide a new driving force for economic growth and a new path for China to realize high-quality and sustainable foreign direct investment.As an important region for China to build the "the Belt and Road" with high quality,ASEAN and China have continuously strengthened connectivity,become each other’s largest trading partner,and continue to deepen economic integration.However,there are still some problems in China’s investment in ASEAN countries,such as low investment efficiency and uneven investment distribution.At the same time,on the basis of sorting out relevant literature at home and abroad,this paper finds that China’s FDI research mostly focuses on the impact of market scale,economic development level,infrastructure,natural resource endowment,regional distance and other factors on direct investment and location choice.There is little research on Internet development efficiency from the perspective of direct investment.In view of this,this paper combs the relevant literature on Internet development and OFDI,summarizes the mechanism path of Internet development affecting OFDI efficiency,and starts from the perspective of Internet development.Firstly,it analyzes the current situation of Internet development in ASEAN Member States,the overall scale of China’s investment in ASEAN,the current situation of investment region and the current situation of investment industrial structure.Then it constructs the index system of Internet development level,and calculates the Internet development level of ten ASEAN countries through principal component analysis.Then,using the panel data of ten ASEAN countries from 2005 to 2020 and the stochastic frontier gravity model,this paper calculates the main factors affecting China’s direct investment in ASEAN.In particular,the relationship between the development level of ASEAN Internet and the efficiency of China’s direct investment in ASEAN.The results show that among the key explanatory variables of the main model,the economic scale,openness and natural resource endowment of the host country have a significant positive relationship with the efficiency of China’s investment in ASEAN countries,while the labor cost and strategic asset level of the host country have a significant negative correlation with the efficiency of China’s direct investment in ASEAN.In the non efficiency item,except that the government efficiency and the degree of legal norms of the host country are significantly positive,the construction level of Internet technical facilities,the level of Internet innovative technology and political stability of the host country are significantly negative,that is,they are positively proportional to the efficiency of China’s direct investment in ASEAN.On the whole,the development of ASEAN Internet level is beneficial to improve the investment efficiency of China and ASEAN.Finally,according to the different income levels,the ten ASEAN countries are divided into three groups:high-income level,upper middle income level and lower middle income level for sub sample regression,and come to the conclusion that the Internet development level has a better effect on the improvement of the efficiency of China’s direct investment in upper middle income ASEAN countries.Finally,this paper takes Alibaba’s direct investment in ASEAN e-commerce platform lazada as a case for specific analysis.Based on the above research results,this paper puts forward some reassures and proposes for Chinese enterprises and ASEAN countries use Internet technology to improve the efficiency of OFDI.First of all,the Chinese government can start with learning from the experience of Internet development in ASEAN developed countries to carry out higher-level exchanges and cooperation in the Internet field.At the same time,it can also work with ASEAN countries to support countries with slow Internet development.It should use Internet technology to strengthen mutual connectivity and improve investment efficiency.Secondly,Chinese enterprises should take into account the Internet development level of the host country when formulating the OFDI plan,so as to make it play the greatest role in investment and business activities.