Research On The Location Selection Of China's Direct Investment In Central And Eastern European Countries

As a gateway connecting Eurasia,Central and Eastern Europe(CEE)is both an important part of the “Belt and Road” and a key direction for China to optimize its overall investment layout.On the one hand,most of the CEE countries are in the stage of rapid development of industrialization and urbanization,and in the recent years,driven by European industrial upgrading and capital transfer,they have become the most dynamic regions for the current global economic development.This not only makes CEE and China highly compatible in the field of economic and trade cooperation,but CEE's relatively mature market development level and complete industrial development foundation also provide a good market operation environment for Chinese enterprises.On the other hand,CEE is at the junction between the most developed EU integrated market and the most important energy producing areas.Its geographical advantage is obvious,which is a key channel for China to enter the EU market.Strengthening the level of investment and cooperation between China and CEE's countries will help to exert its regional "radiation" effect,thus building a smoother bridge for China to further explore the EU market.Although with the gradual deepening of the "16+1" cooperation,China's OFDI in CEE has achieved significant growth in recent years,however,it is undeniable that the low investment base still shows that the bilateral investment relationship between China and CEE is still in the primary stage of adjustment and replenishment.The differentiated cooperation needs,the diversified social environment,and the competitive squeeze of foreign countries in CEE have brought challenges to the optimization and expansion of Chinese investment in this region.While hindering the process of mutually beneficial cooperation between China and CEE,it also inhibited the overall willingness of Chinese investors,thus making China's sustained and stable economic and trade cooperation with CEE facing great threats.In view of this,in order to further consolidate the investment cooperation base between China and CEE's countries,and comprehensively optimize the strategic layout of China's capital in CEE,this paper have reviewed the existing literature research,systematically sorted out CEE's location advantages and historical opportunity conditions from the actual situation in CEE.While clarifying the logical basis of location selection in China,I have adopted a variety of measurement methods.Starting from empirical evidence,I have measured the level of investment facilitation,China's investment motives,and the potential space of China's OFDI in CEE's countries.Taking this as a reference,I have also made a scientific choice for the location flow of China's direct investment in CEE.I believe this will provide useful experience and reasonable decision-making reference for further improving China's investment mechanism and layout in Central and Eastern Europe,accelerating the smooth implementation of the “Belt and Road” construction,“going out” strategy and “16+1” cooperation.This article has eight chapters.The first chapter is the introduction.On the basis of the background of the research,the theory and practical significance of the research are systematically expounded,and the objectives,ideas and possible innovations of the research are explained in detail.While the overall planning of the paper is carried out,it provides clear clues for the framework of the full text.The second chapter is a literature review.At present,scholars have achieved fruitful research results in OFDI theory and location selection.In order to effectively avoid duplication of research and broaden the research space,this paper sorts out and summarizes the relevant literatures on OFDI theory of developed countries,OFDI theory of developing countries,China's OFDI theory,the choice of OFDI location under the influence of economic factors,the choice of OFDI location under the influence of non-economic factors,and China's direct investment in CEE countries.While providing a strong argument for the paper,it also provides sufficient reference support for exploring the research gap and the research deficiencies,which plays an important role in further clarifying the research direction and research value of this paper.The third chapter is the analysis of the status quo of China's direct investment in CEE countries.Although in the historical background of the continuous development of the “Belt and Road” construction and the “16+1” cooperation,China and CEE have made great progress both in terms of cooperation content and scale.However,it is undeniable that China's direct investment base for CEE countries is still generally low,and there is great room for market expansion.In order to further promote the complementary advantages of the two sides and lay a more solid foundation for the improvement of the investment structure of the “Belt and Road”,this chapter summarizes the current status of investment in CEE on the basis of systematically reviewing the development history of China's direct investment in CEE countries.And in this context,this paper qualitatively puts forward the regional advantages of CEE,the historical opportunities and challenges for China's direct investment,thus clarifying the logical basis of China's location selection,and also providing valuable experience for Chinese enterprises to “sail” CEE.The fourth chapter is the construction of a comprehensive indicator system for investment facilitation in Central and Eastern Europe.In order to measure the investment environment of CEE countries objectively,comprehensively and efficiently,and to promote the improvement of China's capital location investment efficiency from the perspective of the host country,this chapter has constructed a complete evaluation index system of investment facilitation,Starting from the five levels of infrastructure quality,investment management efficiency,financial and information service level,institutional supply capacity and labor market environment,this chapter systematically quantifies the investment convenience of CEE countries and objectively assesses the differences in investment environment among countries.On the basis of this,it further refines the competitive advantage of the CEE markets,thus providing a scientific location decision reference for Chinese enterprises to invest in CEE.The fifth chapter is the analysis of China's location investment motives for CEE countries.The location choice of OFDI depends not only on the level of facilitation of the host country,but also on the investment motives of the home country enterprises.In order to objectively reflect the matching level between the regional advantages of CEE countries and the investment motives of Chinese enterprises,and to realize the differentiated differentiation of investment decisions among different Central and Eastern European countries,this chapter starts from the relationship between investment motivation and location selection.On the basis of clarifying the types of OFDI motives in China,this chapter verifies the influence direction of China's investment motives in CEE countries through empirical analysis.Using the grey correlation analysis method,this chapter also quantifies China's investment motive preferences for different CEE countries.While improving the efficiency of the connection between Chinese enterprises and the CEE markets,it also provides a new guiding way for optimizing China's location layout of direct investment in CEE.The sixth chapter is the analysis of the potential for China's direct investment in CEE.Although the location advantage based on a single perspective can help to improve China's selection and operational efficiency of direct investment in CEE,however,the one-sidedness of the reference factors does not achieve an overall judgment on the potential of China's direct investment in CEE and a systematic measure of the rationality of investment location selection.Therefore,based on the previous research conclusions,this chapter unifies the investment factors involved above.Under the dual perspective of the investment environment of the host country and the investment motive of the home country,this paper uses the stochastic frontier model to scientifically measure the direction and extent of the impact of different factors on China's investment scale,and on this basis,clarifies China's efficiency and potential space for direct investment in CEE.This provides a more comprehensive enlightenment and empirical support for Chinese enterprises to explore the investment opportunities and optimize the location investment layout in CEE.The seventh chapter is the location selection framework for China's direct investment in CEE.Based on the calculations and analysis results of the fourth,fifth and sixth chapters,this chapter builds the location selection framework for China's direct investment in Central and Eastern Europe from the regional plate level.At the same time,based on the development characteristics and current situation of CEE countries,this chapter has carried out in-depth analysis of key countries.While clarifying the areas of investment advantages of various countries,this chapter proposes differentiated investment strategies based on different market risks,which provides a strong planning guarantee and strategic support for further improving the layout plan of China's capital in CEE and comprehensively improving the operating efficiency of Chinese enterprises in the CEE markets.The eighth chapter is conclusions and policy recommendations.While systematically summarizing the content of the full text,based on the current common problems of China's direct investment and location choices in CEE countries,this chapter puts forward corresponding policy recommendations from the government and enterprise levels.This provides a strong support for resolving the dilemma of China's investment cooperation in CEE,comprehensively promoting the diversification process of bilateral cooperation,and achieving mutual benefit and common prosperity.