The Impact Of Cultural Products Export On China’s Foreign Direct Investment

Since the “Belt and Road” initiative was proposed in 2013,although China ’s foreign direct investment in the countries along the “Belt and Road” has been increasing,China ’s investment in the countries along the route is unevenly distributed and the investment countries are too concentrated.The risks encountered by Chinese enterprises in foreign direct investment are also becoming increasingly prominent,especially due to the risks brought by the multicultural differences.The countries across the line span a wide range of countries,and their national cultures are also diverse.With more and more cultural conflicts.In order to solve this problem,many scholars use the Confucius Institute as a proxy for cultural output to study the impact of cultural output on OFDI in China,but the number of Confucius Institutes set up in each country is relatively small,and the coverage may be relatively narrow,so this article selects cultural products Export is a proxy for cultural output.Using panel data from countries along the “Belt and Road”,the theory and empirical methods are used to analyze the impact of cultural product exports on China’s OFDI.First,on the basis of sorting out relevant domestic and foreign literature,this article theoretically analyzes the impact of cultural product exports on China’s OFDI,and summarizes the impact into three effects,namely,a cost reduction effect,a risk aversion effect,and a trade complementary effect.Considering that the export of cultural products is positively related to China’s foreign direct investment,and the cultural distance is negatively related to China’s foreign direct investment;the promotion of cultural product exports in developing countries is more significant;the impact of cultural product exports on OFDI is different,The impact on different investment motivations is different.Secondly,this paper selects the panel data from 2007 to 2016,takes the export volume of cultural products as the core explanatory variable,and uses the investment gravity model for empirical analysis and testing.The steps of the empirical analysis are as follows: First,this article uses 2SLS and regression gradually to perform regression on the entire sample.Second,considering the endogenous problems of cultural product exports and OFDI,the instrumental method is used to resolve the endogenous problems between them,Divide the entire sampleinto developed and developing countries for regression analysis;fourth,divide the full sample into resource seeking,technology seeking,labor seeking,and market seeking to test the export of cultural products to OFDI under different investment motivations Role.According to the above regressions,this article arrive at below results.First,the export of cultural products has a important role in improving China’s foreign direct investment.Exports of cultural products can reduce transaction costs by reducing cultural differences,strengthen cultural identity and increase market size,thereby promoting the development of China’s foreign direct investment.Second,cultural distance has a critical obstacle to China’s outward direct investment.The cultural distance between the two countries more different,the greater the uncertainty and risk of foreign direct investment,bring about increased transaction costs,limiting the market size of the host country and hindering it.Development of foreign direct investment.Third,the promotion of cultural products exports to China’s OFDI in developing countries is stronger than in developed countries.Developing countries have less knowledge about our culture and the greater the cultural distance from our country,so the export of cultural products has a more significant role in developing countries.Fourth,the export of cultural products has different effects on different investment motivations.The export of cultural products has a more significant role in promoting OFDI in countries with smaller markets and lower levels of science and technology.Finally,this article attempts to give relevant suggestions: first,accelerate the upgrading of China’s industrial structure,promote the development of cultural industries,and accelerate the pace of Chinese culture going global;second,strengthen cultural communication and exchanges with other countries,reduce The cultural distance between small and other countries;Third,companies should consider the cultural distance when making investment location decisions,noting the important auxiliary role of cultural product exports.