The Influences Of Country Enviromental Factors On ODI And FDI Behavior

The basic insight of the eclectic theory of international production and culturetheory is that the country environment and national culture have impacts on FDI(foreign direct investment).Investigating the implications of the impacts aresignificative for the investment overseas and absorbs foreign direct investment.Basedon the analysis of the environment and culture factors of home country and host country,this dissertation is mainly concerned with the influences of cultural and environmentalfactors of home country and host country on cross-boundary investment behavior,andcomparative research the similarities and differences on the impacts of home countryand host country.The main contents and conclusions are as follows.Firstly,this dissertation studies the impact of country environment and nationalculture in FDI of home country.By extracts information from China Foreign EconomicStatistical Year Book (1979-1996),Business China (1997-2005) and China BusinessReview (1997-2005) as the research sample,and based on the frame of the eclectictheory of international production and culture theory,this dissertation divided countryenvironment and national culture into five factors,which include global links,states andmarkets,economy,people and culture dimensions.This dissertation constructs a modelof home country environment and culture affect on cross-boundary investment behavior.The results indicate that the home environments factors affect on FDI are global links,states and markets,economy,and the culture dimensions affect on FDI is uncertaintyavoidance.Secondly,this dissertation use investigates information of world developmentindicators database,reveal the effects of host country environment and culture affect onFDI.The results indicate that the host country environments factors affect on FDI areglobal links,states and markets,economy,while the culture factor affect on FDI isindividualism and collectivism dimension.And then,this dissertation compares the mechanism of the impacts of homecountry and host country,and found that there exist distinct differences.For example,the impacts of industry value added percent of GDP on home country and host country are contrary.Lastly,this dissertation investigates the impacts mechanism of cultural andenvironmental factors of home country and host country on FDI,reveals the impacts ofculture heterogeneity on entry mode choice.The results provide theory guide for thechina company's internationalization management strategy,and instruct companies howto choose host country and enter mode.Consequently,it enhances the competitivenessof Chinese enterprises.The results also apply a conference for constituting relatedpolicies for countries.