Research On Impact Of Infrastructure In "Belt And Road" Countries On The Location Selection Of OFDI In China

In the context of the Promotion of the “Belt and Road” Initiative,the infrastructure of the host country is a key factor influencing the location choice of OFDI(Of foreign direct investment).Therefore,it is necessary to study the current situation and existing problems of infrastructure construction and investment in the "Belt and Road" countries from the level of full sample and sub-sample.This is useful for analyzing the advantages of China’s participation in its infrastructure investment.To enable Chinese enterprises to choose a more appropriate way to participate in cross-border investment.In this paper,the principal component analysis method is used to construct the index of transportation,energy,and communication infrastructure.On this basis,four basic regression models are constructed in combination with the overall infrastructure index.Considering the endogenous problem,the system GMM method is used to conduct robustness testing.Taking into account the possible phased characteristics,a panel threshold model is constructed based on the per capita GDP and infrastructure development index respectively,which tests the non-linear relationship between the host country’s infrastructure and China’s outward direct investment.Finally,this paper will also classify the countries along the “Belt and Road” according to the level of regional and economic development,classify the investment purposes of Chinese enterprises according to labor type,resource type,market type and innovation,and study the impact of the infrastructure of the "Belt and Road" countries on the location choice of China’s OFDI,so as to test the heterogeneity of infrastructure in China’s OFDI.The study found that from a full-sample perspective,the improvement of infrastructure in countries along the “Belt and Road” has helped China to invest in it.In terms of facilitation,transport infrastructure is greater than energy than communications.There is a single threshold effect on the impact of China’s OFDI on the quality of infrastructure in the “Belt and Road” countries,and the threshold model based on the per capita GDP and infrastructure development index shows that China’s OFDI is affected by the quality of infrastructure in the host country,and the lower the threshold index,the greater the impact.From the perspective of sub-samples,infrastructure under the regional division is an important factor affecting China’s investment location choice in West Asia,North Africa and Southeast Asia,but the impact on other regions is weak.Infrastructure is an important factor influencing China’s investment location choice in developed and developing economies under the division of economic development level,but the impact on the investment location choice of transition economies is limited.Countries with poor infrastructure levels are more attractive to market-seeking enterprises,and countries with good infrastructure levels are more attractive to investment by resource-seeking enterprises.OFDI for workforce-seeking and strategic asset-seeking companies has not been significantly affected by host country infrastructure.According to the research results,this paper believes that China should make good use of the opportunity of the “Belt and Road” construction,fully consider the infrastructure and other conditions of the host country,rationally plan of outward direct investment and improve its own international operation and management capabilities and its own profitability.