The Impact Of Host Country Investment Facilitation On China’s Outward Foreign Direct Investment

On November 15,2020,the 10 ASEAN countries and 15 countries in the Asia-Pacific region,including China,Japan,South Korea,Australia,and New Zealand,jointly signed the Regional Comprehensive Economic Partnership(RCEP).RCEP includes standardized content in investment facilitation,investment liberalization,investment promotion,investment protection,etc.The signing of the agreement can increase the transparency of investment policies in the RCEP region,create a good investment environment,improve the level of regional investment facilitation.and accelerate the process of China’s Outward Foreign Direct Investment(OFDI).At this time,to examine the investment facilitation level of RCEP member countries and analyze its impact on China’s OFDI can provide some theoretical guidance for Chinese enterprises to "go global" and improve the quality and efficiency of China’s OFDI.This article takes RCEP countries as the research object to explore the impact of the host country’s investment facilitation on China’s foreign direct investment.First of all,this article systematically sorts out the theories of transaction costs,location advantages,small-scale technology,investment-induced factor combinations,etc.,to lay a theoretical foundation for subsequent research,and introduces China’s investment in RCEP from the perspectives of the scale and flow of China’s direct investment in RCEP countries.The current state of OFDI in the country.Secondly,the RCEP national investment facilitation level evaluation system is constructed with 6 primary indicators of infrastructure,market environment,financial services,system quality,labor market,and technological innovation capability and 26 secondary indicators in detail,using entropy value Method calculation found that technological innovation ability has the greatest impact on investment facilitation.In the overall analysis of the investment facilitation level of each member country,it is found that the overall score of the RCEP country’s investment facilitation level is low,but it is showing a trend of gradual improvement.Countries with a higher comprehensive investment facilitation index generally have various indicators It is also relatively high,and the level of investment facilitation within the region differs significantly from country to country.Japan,Singapore,and Malaysia have always been in the leading position in investment facilitation,while Brunei,Cambodia,Laos,and Vietnam have been lagging behind.Thirdly,through the empirical test of the expanded gravity model,it is found that the improvement of RCEP countries’ investment facilitation has significantly promoted the growth of China’s OFDI.Each sub-indicator has a positive effect on China’s OFDI,and the labor market has the greatest effect.The analysis of heterogeneity shows that the “Belt and Road” regions,high-trust countries,distant countries,and non-developed countries can significantly attract China’s OFDI inflows through the promotion of investment facilitation.Finally,it gave specific policy recommendations on how China will promote the improvement of RCEP countries’ investment facilitation in the future,that is,deepen policy communication with RCEP countries,improve the labor market,promote infrastructure construction,create a good investment environment,optimize the quality of financial services,enhance technological innovation capabilities,etc.