China’s OFDI Impact On The Economic Growth Of The Belt And Road Countries

Since “the Belt and Road Initiatives” was put forward,it has achieved great achievement.However,in recent years,international community has questioned the economic significance of “the Belt and Road Initiatives”,believing that the “the Belt and Road Initiatives” is China’s “neocolonialism”.This paper takes the countries along“ the Belt and Road” as a research perspective,and explores the impact of China’s OFDI on its economic growth and whether this impact has changed positively after“the Belt and Road Initiatives” was put forward.The positive effect of China’s OFDI on the economic growth of countries along the route can also provide policy support for China’s high-quality construction of “the Belt and Road” cooperation framework.This paper firstly sorts out the literature related to the research topic,including the theory of economic growth,the influencing factors of economic growth,the relationship between direct investment and the economic growth of the host country,and the policy effects of “the Belt and Road initiative”.Scholars at home and abroad generally believe that FDI can promote the economic growth of the host country,but the impact mechanism is more diverse;the factors affecting economic growth include both traditional factors and other factors.The current literature research on the policy effects of “the Belt and Road initiative” mainly focuses on how “the Belt and Road initiative” promotes the growth of China’s direct investment in countries along the route and the improvement of the efficiency of direct investment by enterprises.In terms of theoretical analysis,on the basis of literature research and theoretical research,this paper enriches and completes the analysis framework of China’s OFDI’s impact on the economic growth of countries along “the Belt and Road”,and regards“the Belt and Road initiative” as an industrial policy,and innovatively proposes an analytical framework for the impact mechanism of “the Belt and Road Initiative”policy.This paper argues that China’s OFDI can promote the economic growth of countries along the route by increasing capital supply,labor input,improving technological level,promoting industrial structure upgrading,creating tax sources,improving infrastructure level,and optimizing institutional quality.It affects the technology transfer effect,direct investment scale and direct investment efficiency of China’s OFDI to the countries along the route,and further strengthens the role of China’s OFDI in promoting the economic growth of the countries along the route.In terms of current situation and case analysis,this paper finds that China’s direct investment in countries along the route presents the characteristics of steady growth in direct investment scale,centralized location selection,and the coexistence of diversified and unbalanced industry distribution.And the case is supplemented by taking the overseas economic and trade cooperation zone as an example.In terms of empirical analysis,the panel model is constructed by using 44 countries along the Belt and Road selected from the 63 countries along the Belt and Road,according to the statistics of the Ministry of Commerce’s Foreign Direct Investment Bulletin,based on the scale of China’s direct investment in the country from 2003 to2019 exceeded US$100 million as the research object,explores the impact of China’s OFDI on the economic growth of these countries along the route,and makes innovations on this basis by using the expansion model and the PSM-DID model to investigate the policy effects of “the Belt and Road initiative” based on the OFDI impact mechanism;when analyzing the heterogeneity of “the Belt and Road initiative”policy effects,in addition to the traditional perspective,such as economic development and geographic distance,the research adopts the innovative perspective of whether to sign free trade agreements and bilateral investment agreements.Finally,this paper concludes that China’s OFDI can promote the economic growth of the countries along the route,and “the Belt and Road initiative” can strengthen the role of China’s OFDI in promoting the economic growth of the countries along the route,but there is a certain "lag" effect in the implementation of the policy effect;the policy effect of “the Belt and Road initiative” is more pronounced in countries along the route with lower levels of economic development,closer geographical distance,and signed free trade agreements and bilateral investment agreements with China.