The Measurement And Influence Mechanism Research Of FDI Protectionism

Since the year2000, some of the countries gradually increase the proportion of regulatory restrictions for foreign direct investment,increasing the intensity of FDI protectionism. After the global financial crisis in2007, the investment protectionism is growing more series. FDI protectionism is on the rise.First of all, I gave the definition of FDI protectionism.There are two situations that qualify as FDI protectionism:in the context of inward FDI, FDI protectionism involves new measures by public authorities that are taken to prevent or discourage foreign direct investors from investing in, or staying in, a host country. In the context of outward FDI, FDI protectionism involves measures directed at domestic companies that require them to repatriate assets or operations to the home country or discourage certain types of new investments abroad.This paper first analyzes reasons why FDI protectionism was so porpular, and the host governments mainly take the national security and economic security into considerations when they implement FDI protectionis;then analyse performances of FDI protectionism-national security screening, market monopoly investigation combined with cases of the CNOOC bid for Unocal, Temasek Holdings of Singapore, CIMC Group acquired Netherlands Borg.Creat FDI protectionism index system by using the OECD data in2010in33countries, except Israel, to build a cross-sectional data model to reveal the mechanism of FDI protectionism and its political, economic and institutional factors. Empirical conclusions are as follows:the level of FDI protectionism in OECD nations also relate to its economic skills and political skills as well as the unemployment rate, the growth rate of per capita GDP, the government’s share of GDP and other traditional trade and investment framework factors. The stronger the economic skills of voters are and the more relaxed policy on IFDI, the lower the level of FDI protectionism. In addition, the interaction of economic skills and political skills will also affect their IFDI. When the electorate economic skills, political skills are both high, IFDI policy prefer to loose; IFDI policy prefer to strict while lower voter economic skills and higher political skills.Finally, I come up with some suggestions China’s overseas FDI according to the current situation and characteristics of China.