Research On The Impact Of Digital Economy Development Of The Host Country’s Along The The Belt And Road On China’s Foreign Investment Efficiency

After the 1990s,with the development of the world economy,outward direct investment rapidly spread around the world,and the amount of investment also increased gradually.With the implementation of the "going global" strategy,especially the construction of the "the Belt and Road",China has more trade with countries and regions along the"the Belt and Road",and the amount of investment is increasing.However,in recent years,the rise of trade protectionism and anti globalization trends has led to increasing international trade conflicts,a decline in the global economy,and a slowdown in foreign economic activities of various countries.Especially since 2020,with the outbreak of COVID-19,worldwide investment has declined significantly.However,in this context of economic development,the digital economy has shown a strong economic driving effect,not only creating new growth points for the economy,but also improving production efficiency and promoting social progress.Therefore,studying the impact of the development of a country’s digital economy on the efficiency of OFDI has certain significance.Chapter 3 is the theoretical foundation,which compares the theories related to OFDI and the digital economy,and proposes the impact mechanism of the digital economy affecting the efficiency of OFDI.Chapter 4 is an analysis of the current situation,mainly focusing on the development status of digital industries in countries along the route and China’s investment in countries along the route.Chapter 5 is the empirical analysis.Firstly,I calculate the efficiency of China’s OFDI to the countries along the route by constructing a stochastic frontier gravity model,and analyse the specific reasons for the impact on efficiency.Secondly,the 1:1 nearest neighbor matching method was used to test the mechanism of action.Chapter six is conclusions and recommendations.The results of this paper show that the digital economy along the Belt and Road has developed at a relatively steady pace,but there are large differences in efficiency between countries,mainly due to historical and institutional differences.The digital economy in host country has a positive relationship with the efficiency of China’s foreign direct investment.In addition,the two mechanisms of software and hardware infrastructure and technological progress in all samples have an impact on foreign direct investment.