A Research On Chinese Outward Foreign Direct Investment: System Influence And Analysis Of Subjects Structure

This research is composed of 9 chapters. From the status of Chinese foreign direct investment, we put forward the status quo of China's foreign direct investment of the notable structural problems:the central state-owned enterprise are so big, more corporate are from coastal areas, small and medium-sized enterprises are so less, the private enterprises are os less, enterprises from western are so less. On this basis, we put forward the goal of this research:the theoretical basis for the determination of Chinese enterprises'foreign direct investment, and the prplom of the structure of Chinese enterprises'foreign direct investment.Chapter 1 is the introduction and main purpose of this essay, significance and research methods, etc.Chapter 2 begin with the introduction of Chinese foreign direct investment, and then come up with the problem of present situation on the basis of analyzing the characteristics of the statuse, namely the Structural problems of China's foreign direct investment.Chinese foreign direct investment main features focous on 3 facts, namely,1 kind big,2kinds more and 3 kinds less, among them,1 kind big namely the enterperises "going out" is with big scale of and is central enterprises; 2 kinds more include 2aspects:enterprises from coastal areas is more, and state-owned enterprise more; Three kinds less is small and medium-sized enterprises, private enterprises less, enterprises from western less. On this basis, we propose the aim to solve:whst's the the theory of Chinese enterprises'"go out"?Why are here so much differencr between the western and the eastern of china, and why the difference beweeen difference ownership under this theory systerm comes? How did the "going out" of Chinese enterprises affect the employeement in motherland? This influence is long-term or short-term?In Chapter3, we reviewed the existing theory of foreign direct investment and puts forward this research perspectives. After a review of existing foreign theory of direct investment, we inspected the applicability of various theories in China, and we got the conclution that we shall inspect chiness multinatioanal coporations from the institutionsystem. This chapter is composed with 4 parts. First, we talk about the international expansion, international expansion is important for enterprise among the whole life cycle of it. Enterprise's expansion depends on the effective boundary of it, the enterprise operation cost and the ability of enterprise. Secondly, the core of existing foreign direct investment is connected with the monopoly advantage, it's effective for developed countries multinational coporation, but it's lack of ability to developing countries'. Again, the existing foreign direct investment in developing countries theory on foreign direct investment in developing countries has certain extent, but cannot completely explain Chinese foreign direct investment appears "1 kind big,2 kinds more, and 3 kinds little" characters. Fourth, we think the existing theory obviously overlooked the characteristics of China instituton system, oversight system effect for Chinese TNC. So, our paper will put influence of the system as an important variable to join suitable for Chinese foreign direct investment to the theory of research.In Chapter 4, we analyzed the determination of Chinese out-ward foreign direct investment under the influence of institution enviroment from theoretical and empirical Angle. First, we proposed that the theory of resource-based view provided the possibility for developing countries to timely implement out-ward foreign direct investmentingAn enterprise may obtain strategic resources needed through overseas investment which is initial to enterprises'development, and then to build their cross-border competitive advantage through the staagical resource.Secondly, we analyzed the influence from institutional factors of China on the compromise theory of enterprise outward foreign direct investment. After revising the theory, we drew the conclusion that Chinese institution enviroment affected each competitive advantage of Chinese TNC.Again, we use enterprises level data on enterprise to analysis empirically the status of Chinese system's influence on the determinant of foreign direct investment. Test results show that under the influence of central defining supporting policies, the character of parent companies'system characteristics, enterprise scale, parent enterprises'resources, Chinese institutional environment's annual features show a significant positive correlation with Chinese enterprise outward foreign direct investment scaleIn Chapter 5, we cmpleteted tow tasks. First, we analysised the structure and change of the management system of Chinese enterprise's outward foreign direct investment. Secondly, we use evolutionary economics method to analyze the macroscopic system change, our country face the internationalization of evolution model enterprise.First we proposed system is the logical starting point of any things, and the logical starting point will also evolve with the development of practice.From then on, we analysis the trace of the evolving of Chinese foreign direct investment.we regard the evolve of this process is a change from strict examination and approval to relax restriction, and then to appropriation. Meanwhile, as the examination and approval system on foreign direct investment relented, regulatory system and service system also rise perfect gradually, and adjust the targeted with the state policies and principles change. Finally, we put forward the insuffience of existing management system on foreign direct investment。In the end we got the conclution:the supply of management of Chinese foreign direct investment is a gradual pareto improvement process, the process change from informal institutions to the formal system, it change from local form to whole from.After the analysis about above, we formed the perspective of economics based on evolution are reviewed. This paper compares evolutionary economics and neoclassical economics, this paper puts forward the discrepancy in optimization methods, and both major for enterprise cognition and the dynamic development for things and static etc, for there are large differences behind analyzed methods using evolutionary economics laid some basis. Secondly, in our country the government outward foreign direct investment system change premise, we use the population analysis to analyze the enterprise internationalization path evolution, namely from through trade exports to accomplish internationalized through foreign direct investment accomplish internationalized evolution, this process and merry's theory of new trade on enterprise development has similar.Our conclusion is the enterprise will from trade to cross-border investment along the direction of development. In the 6th chapter, we analysize the reason for structure characteristics and the regional difference of Chinese outward foreign direct investment, our conclusion is defining policy and market segmentation is a main causes of these features. First, we investigated the present situation of Chinese enterprises, and puts forward that, the present low efficiency of private enterprise in small scale, the structural differences on eastern region enterprise competitive and Midwest enterprise weaker significant.Secondly, we analyzed the result of these two reasons:the definaation policy on privated enterprise and the market segmentation.Again, we analyzed the cause of the defination policy on the private enterprises and the market segmentation, our conclusion is inadequate of Chinese special transitional economy system and institution system objective these phenomena appear. Finally, we analyzed impact on the outward direct investment of medium-sized and small enterprises in private enterprises from the defination policy on the private enterprise and market segmentation.In the 7th chapter, we analyzed the causes of the form of Chinese foreign direct investment dominated by the governemnt. To explain why the government owned enterprises and central enterprises take the main portion of Chinese outward foreign direct investment, we adopt a model about a government domination outward foreign direct investment to express the role of the government in OFDI.Through a model on the capital goods production in learning by working with information asymmetry and financial constraints fold, under financing source for foreign direct investment is still a scarce resources, facing outward foreign direct investment opportunities, we analyzed the government's deliberately resource allocation for small and medium-sized enterprise produce huge extrusion effect. Due to the existence of asymmetric information, the government's capital market booster is difficult to truly incentive general market economic system of small and medium-sized enterprises and private enterprises. Consequently, government has to take role of both referee and athletes to participate in the outward foreign investment, eventually, those who represents government in the outward direct investment is naturely the state-owned enterprises, especially central belongs large scale enterprises. So, this is the reason of why it is only the state-owned enterprises and especial the central owned enterprises have the power to take part in outward foreign direct investment. Meanwhile we point out that the government leading foreign direct investment is a gradual institutional arrangements, will eventually inevitable replace by the market in resource allocation. So far, we explained the cause of why here come the character of more central enterprises, less private enterprises and less small and medium-sized enterprise.We think that the government leading foreign direct investment is a phased system arrangement. Can be seen from the foregoing, Chinese outward foreign direct investment with the change of a system is closely related to China's economic development strategy, the initiative of enterprises in OFDI in institutional change is poor, so, the change process is actually system of government leading foreign direct investment system formation process, and its change mode is a kind of typical "top-down" mode. In the long run, this pattern is not the most institutional arrangements; establishing enterprise leading foreign direct investment system will still be a major task in the future.Comprehensive inspection of the foreign direct investment homeland employment effect is taken in the 8th Chapter. We used time series data and panel data on inspection.First, we inepected the relation of nationwide outward foreign direct investment and employment with the time seory data. Test results with the macro data from nationwide show that foreign direct investment and employment are positively correlated. Secondly, we test the relation between the employment situation of three industry and the foreign direct investment, the inspection results show that outward foreign direct investment have significant positive relationship the 2nd and 3rd industries, the relation between the 1st industry and OFDI was not significant, that is largely because China agricultural enterprises to go out. Finally we test the relation based on the panel data from 2003 to 2009. Test results show that there's weakly negitive relation between outward foreign direct investment and employment level, the possible explanation is the action of OFDI during this time is mainly focous on the labor-intensive and capital-intensive industries, However, it's must statement that there isn't conflict between the result from seory data and the result from the panel data. Reason depends on the indirection of employee effect from the OFDI; the positive effect of OFDI will show after quite a perioud.In the 9th Chapter, we show the main conclution of the whole text and put forward the corresponding countermeasuresOur basic conclusion is China's growth and transformation of the dual considers decided the features of Chinese enterprises' outward foreign direct investment. It has been 30 years since China's reform and opening up, in a double gap theory premise, carrying the transformation of the economic growth and development for long-term economic dual goals, China adopted characterized with export-led foreign trade policy, all economic policies are in the premise of this policy formulation and execution, including these policy formulation institutions and actuators are in this policy premise of the product. Namely, the formulation of OFDI policy is subservient to export-led foreign trade policy, export-led growth and foreign trade policy is originated from the transformation of the dual consideration. This double consider brought the defination policy on private enterprise and regional segmentation. In this situation, the government imitate east Asian countries and adopted a similar situation government-oriented outward foreign direct investment, this form is aggravated the state-owned enterprises's ratio of Chinese enterprise outward foreign direct investment.We think that the effort should be paid to the following aspects to solve the government leading tendency on Chinese enterprises'foreign direct investment, first, improve the system environment of outward foreign direct investment. Second, further optimization should be paid to the environment on the small and medium-sized enterprises, especially the private enterprise. Once again, timely solve the problem of market segmentation. Finally is to pay more attention to homeland employment effects of employee from outward foreign direct investment.