Research On The Impact Of Confucius Institute On Enterprises Going Global

Benefit from the Silk Road spirit of peace and openness,"Belt and Road" initiative has broadened the path of economic globalization through innovative development and written a vivid footnote of responsibility for win-win cooperation.Sino-foreign cooperation parks have taken root in many countries along the route.At the same time,Confucius Institutes’ numbers along the "Belt and Road" is also increasing,which is a bridge for cooperation between China and countries along the route.With the increase of economic and trade cooperation countries,the cultural differences between countries will gradually become prominent,and economic and trade cooperation will also face some obstacles.Confucius Institutes are an important carrier to publicize the excellent Chinese culture and raise awareness of diverse civilizations,thereby enhancing international cooperation.Based on the positive impact of the "Belt and Road" initiative on the Chinese-funded enterprises "going out",this dissertation combines the establishment of Confucius Institutes in countries along the "Belt and Road" to put forward policy suggestions for promoting the dissemination of Chinese culture and improving the quality of foreign direct investment.After detailed theoretical study on foreign direct investment from developing countries.The details of this dissertation are as follows: First,this dissertation makes statistics and analysis of China’s establishment of Confucius Institutes in countries along the route and the local investment of Chinese enterprises.Then,the investment gravity model is used as a basic regression to explore the impact of Confucius Institutes on the amount of foreign direct investment of Chinese enterprises.In addition,the benchmark model is adjusted to analyze the heterogeneity between regions based on differences in cultural distance and geographical distance.Finally,in order to study the transmission path of the Confucius Institute’s influence on foreign direct investment,according to the results of heterogeneity analysis,a group study was conducted on the foreign direct investment of countries along the "Belt and Road".Through the empirical analysis this dissertation finds that: Firstly,cultural exchange activities,especially the establishment of Confucius Institutes,have greatly encouraged China’s foreign direct investment in countries along the "Belt and Road",which is reflected not only in the number of foreign investments but also in the amount of foreign investment,however,the overall impact on the amount of investment is more significant.Secondly,from the overall perspective of the sample,the effect of OFDI in Confucius Institutes has a strong relationship with the geographical distance between China and the host country,while cultural distance does not have a significant impact on China’s OFDI.Based on the heterogeneity analysis of geographic distance and cultural distance,this dissertation adds the interaction items between Confucius Institute and cultural distance and geographic distance to further study.It is found that with the increase of geographical distance,Confucius Institutes have a promotional effect on China’s outward foreign direct investment to "Belt and Road" countries.By establishing Confucius Institutes,reducing the cultural distance between China and "Belt and Road" countries will promote enterprises going global,but not statistically significant.Third,when cultural distance and geographical distance are relatively high,the establishment of Confucius Institutes in the host country has a positive and significant effect on China’s OFDI,while for countries with low cultural and geographical distances,the result is the opposite.Therefore,China’s enterprises are more inclined to make outward foreign direct investment in countries with a high cultural and geographical distance from China.Accordingly,this dissertation proposes: On the one hand,the country can strengthen the pertinence and effectiveness of regional selection in international cooperation,and advance communication and cooperation with Turkey,Poland,Israel,in order to better play the role of Confucius Institutes in promoting outward foreign direct investment.For countries that have established plenty Confucius Institutes along the Belt and Road",it is suggested that state could focus on improving the quality of Confucius Institutes so as to enhance China’s influence in countries along the "Belt and Road".On the other hand,enterprises can focus on the cultural differences in outward foreign direct investment regions,selectively access to international markets.Enterprises can refer to the construction of the Confucius Institute in the host countries and use the Confucius Institute as a bridge for educational exchanges between the two countries to choose a reasonable way to enter the market.Enterprises can also take the initiative to cooperate with universities that have established Confucius Institutes.