The Empirical Studies On The Institutional Determinants Of Chinese OFDI

Literature shows that:institution-based view to explain Chinese OFDI as the representative of emerging economies and overcoming "latecomers" disadvantage is an important research perspective. Study of institutional factors is the critical to recognize differences in behavior of companies in China and other developing countries during internationalization. It is one of the leading edge researches in the field.This thesis integrates the conventional eclectic paradigm and the institutional perspective to conceptualize an analytic framework for the determinants of outward foreign direct investments.Our primary hypotheses suggest a series of home and host based institutional factors that are associated with the Chinese Outward Foreign Direct Investments (OFDI), included government support, credit policy of home, tax rate and trade barriers of host, and cultural similarity between them. The results obtained from a multiple regression model indicate that except trade barriers, the others have strongly greater positive effect on Chinese OFDI, especially when the hosts are developed countries and regions.According to the results, this thesis suggests policy recommendations to Chinese government and enterprises from the perspective of institution. The government can establish a good economic system and policy system to promote the development of Chinese OFDI. Enterprises should be adept at using the institutional advantage at home and abroad in the development of global strategy, by changing its investment environment into the endogenous variables.